Personal Injury Changes
- AuthorBryan Colley
Director and Head of Personal Injury and Clinical Negligence Bryan Colley, responds to recent articles regarding Personal Injury rule changes in compensation:
When lump sum payments are made by insurers to claimants with life changing injuries, the actual sum that they receive is rounded down by the Discount rate. This is to take into account the fact there is the potential to invest the sum following the accelerated receipt of damages.
Claimants are financially dependent on this lump sum, often for long periods or the duration of their life. Compensation awards using this rate should put the claimant in the same financial position had they not been injured, including loss of future earnings and care costs.
In a recent announcement the Lord Chancellor and Justice Secretary Elizabeth Truss said:
‘I must make sure the right rate is set to compensate claimants. I am clear that this is the only legally acceptable rate I can set’.
The discount rate has been set at 2.5% for over 15 years in which time interest rates have fallen. The change in the rate to minus 0.75% is a welcome change and will ensure that the victims are properly compensated.
Read original article from the Telegraph