Skip to content

Personal injury discount rate consultation

HomeHnyda19251Personal injury discount rate consultation
14.02.2021

The consultation paper raises a secondary question of periodical payment orders (PPOs). Whilst only indirectly related to the discount rate, PPOs are directly relevant to any debate about the best way to ensure lifelong compensatory provision for severely injured claimants. to the law governing the way that the personal injury discount rate is set in England and Wales. The publication of the draft legislation accompanies the publication of the post-consultation report for the consultation paper, ‘The Personal Injury Discount Rate: How it should be set in future’. On 15 th July 2019, the Lord Chancellor announced that the new Personal Injury Discount Rate will be set at minus 0.25%, following a consultation process and as set out within the Civil Liability Act 2018. The Discount Rate is a figure used to help calculate lump sum compensation payments for high value personal injury claims. The personal injury discount rate is a rating which is used to convert an annual future loss into a lump sum in serious Personal Injury claims. It is applied through actuarial tables called the Ogden Tables, which provide a multiplier for the annual loss. in the consultation, that they expected that a new rate would be between 0 and 1%.

2.1 The Personal Injury Discount Rate (‘PI discount rate’) is used to determine lump sum damage awards to claimants who suffer a serious personal injury. 2.2 Historically the Damages Act 1996 provided for the Lord Chancellor to set the PI discount rate, and this was done on the basis of principles set out in case law,

19 Apr 2018 The Ogden Rate (also known as the personal injury discount rate) is reaction to the announcement, a consultation period was launched in  11 May 2017 IFoA response to MoJ Consultation “The Personal Injury Discount Rate”. The Institute and Faculty of Actuaries (IFoA) welcomes the opportunity  7 Sep 2017 The Government has published the highly anticipated response to the consultation on how the personal injury discount rate should be set in  1 Aug 2019 From 5 August 2019 the discount rate for personal injury claims is minus when after much lobbying, a Ministry of Justice (MoJ) consultation in 

19 Apr 2018 The Ogden Rate (also known as the personal injury discount rate) is reaction to the announcement, a consultation period was launched in 

Submissions to the Ministry of Justice Consultation – ‘Personal Injury Discount Rate – How It Should Be Set in The Future,’ closed last month. Given the magnitude of the recent change in the discount rate, it is inevitable that there will be polarised views, driven by claimant or defendant interests. Why is the personal injury discount rate being reviewed? When the discount rate was first set in 2001, it was set at a rate of 2.5%. The return on index-linked government investments plummeted following the financial crisis around a decade ago, eventually leading to a change in the discount rate to -0.75% on 20th March 2017. In my last post I commented on the Ministry of Justice’s recent consultation paper, The Personal Injury Discount Rate: How Should It Be Set In Future?. I expressed my concerns about the Ministry of Justice’s attempt to circumvent the financial implications of its legal obligation to lower the discount rate.

Following a threat of legal action from the Association of Personal Injury Lawyers (APIL), the government is to announce the findings of its consultation into the discount rate for personal injury claims. The discount rate is applied to a lump sum of damages awarded to personal injury Claimants to ensure that they are not over compensated.

to the law governing the way that the personal injury discount rate is set in England and Wales. The publication of the draft legislation accompanies the publication of the post-consultation report for the consultation paper, ‘The Personal Injury Discount Rate: How it should be set in future’. On 15 th July 2019, the Lord Chancellor announced that the new Personal Injury Discount Rate will be set at minus 0.25%, following a consultation process and as set out within the Civil Liability Act 2018. The Discount Rate is a figure used to help calculate lump sum compensation payments for high value personal injury claims. The personal injury discount rate is a rating which is used to convert an annual future loss into a lump sum in serious Personal Injury claims. It is applied through actuarial tables called the Ogden Tables, which provide a multiplier for the annual loss. in the consultation, that they expected that a new rate would be between 0 and 1%. The consultation closes on Thursday 10 May 2017. Prior to 20 th March 2017, the Discount Rate had not changed since 2001. The decision is likely to have significant implications on the insurance industry and large personal injury liabilities, particularly the NHS, in respect of the potential additional costs relating to personal injury claims. Response to the Third Personal Injury Discount Rate Consultation. Posted on 31st January 2019 7th May 2019 by Joe S ‘This further response deals with the issues and questions raised within the 6th December 2018: ‘Setting the Personal Injury Discount Rate – A Call for Evidence’. Submissions to the Ministry of Justice Consultation – ‘Personal Injury Discount Rate – How It Should Be Set in The Future,’ closed last month. Given the magnitude of the recent change in the discount rate, it is inevitable that there will be polarised views, driven by claimant or defendant interests.

It appears the, in its post-consultation response, the Ministry of Justice (MoJ) accepts that the new rate of -0.75% overcompensates personal injury Claimants. The 

4 Apr 2019 ANALYSIS: A bill to reform the method of setting the discount rate for personal injury damages claims, and to permit the courts to order  19 Jul 2019 The Ogden Discount Rate change and the impact on insurance premiums On 15th July 2019, the Lord Chancellor announced that the new Personal Injury Discount Rate will be set at minus 0.25%, following a consultation  18 Jul 2019 The change in 2017 to a negative discount rate of -0.75% was met with shock a consultation on this issue in order "to inform the next discount review and the / ogden-tables-actuarial-compensation-tables-for-injury-and-death the Serious Injury Guide 2015 works in practice · Accommodation claims:  22 Jul 2019 Discount rate for personal injury claims increases in England - but Lord Chancellor and, while he must consult the UK Government Actuary,