More than €115m was awarded last year to accident victims outside of the courts system marking a 600% hike on 2005.
The Personal Injuries Assessment Board (PIAB) revealed it had processed claims three times faster and 70% cheaper than the courts last year.
The average accepted payout per person was €19,610, while the highest was €408,415, according to the PIAB‘s annual report.
Workplace accidents accounted for the most claims, with the biggest average award totalling €23,141.
PIAB Chief Executive Patricia Byron said: “Since our establishment in 2004, we have delivered a reduction of €45m in processing costs, which will increase to €40m in 2007.
“We continue to focus on making the PIAB process user-friendly, reducing stress and trauma for accident victims.”
“We plan to further enhance our service to consumers including a 24/7 online system allowing customers to complete and track their applications electronically.
“In addition, we plan to increase awareness levels with our customers on how to access our services and the benefits it can offer.”
PIAB was set up as part of the Government Insurance Reform Programme to tackle the high costs associated with paying compensation to victims of motor, workplace and public liability accidents.
Under the scheme, those involved in injury claims no longer have to go through the legal system to process their applications.
But if they are not happy with their PIAB award, they can still pursue their claim through the courts.
According to the Courts Service, the number of civil matters dealt with last year jumped significantly from 22,692 to 26,503, partly due to PIAB releases.
The majority of PIAB claims last year were made by general labourers, at 33%, while those in sales came in second at 11%.
The total awarded figure was €115.3m, compared with €16.3m in 2005.