Britain will change the discount rate used to calculate compensation for personal injuries to minus 0.25% from minus 0.75%, disappointing insurers who were hoping for a higher rate to limit the The way in which the discount rate applied to lump sum personal injury payments is calculated will be changed in order to "better reflect evidence of actual investment habits", the UK government has confirmed. In February, the Ministry of Justice announced that the personal injury discount rate would be reduced from 2.5 to minus 0.75 per cent (in inflation-adjusted real terms). This discount rate is used when calculating lump-sum awards in respect of financial loss due to personal injury. Whilst the news may not be welcomed by insurers, it will be by the majority of Claimant personal injury and medical negligence solicitors across the UK. The previous discount rate was set in 2017 and was met with consternation by the insurance industry, who argued that a discount rate at -0.75% over compensated Claimants and would cause In March 2017 the new discount rate, to be applied to personal injury compensation, became effective. The discount rate dropped dramatically from 2.5% to -0.75%. In this blog we discuss the backgrounds of the change, the potentially massive consequences for claims reserves and the options for a fairer framework. Because there was no advance notice and the discount rate hadn’t budged in 16 years, the deep change was a surprise. First, the significant rate reduction dramatically increased the damages awarded to personal injury claimants receiving a settlement for future losses. Therefore, insurers had to make a massive shift in reserves to be able to Today, the Lord Chancellor Rt Hon David Gauke MP issued a statement on the discount rate that is applicable to personal injury lump sum compensation payments – known commonly as the Ogden rate
14 Jul 2019 Revealed: Government sets PI discount rate at -0.25% The lord chancellor has finally revealed the new personal injury discount rate after months of The rate is currently set at -0.75%, which has been in place since the Gauke also rejected the proposal for dual rates, which would have involved a The rate will be set by reference to expected rates of return on a low risk diversified portfolio of investments rather than very low risk investments as at present. Low Ogden tables are a set of statistical tables and other information for use in court cases in the UK. Their purpose is to make it easier to calculate future losses in personal injury and fatal accident cases. The tables take into account life expectancy and provide a range of discount rates of the discount rate by the Lord Chancellor (currently under consideration as 5 Sep 2019 Treasury to review discount rate for personal injury claims. The Treasury has responsibility for setting discount rates in the Isle of Man and any 'The Treasury is currently assessing all available information and has also
The personal injury discount rate In February 2017, just ahead of the Spring Budget and our March Economic and fiscal outlook, the Ministry of Justice announced that the ‘personal injury discount rate’ would be reduced from 2.5 to minus 0.75 per cent (in inflation-adjusted real terms). 10 argued that the change to a -0.75% discount rate has acted as a driver for a decline in PPOs, as claimants were opting for lumpsums on the basis that they can receive more than 100% compensation.
1 Aug 2019 From 5 August 2019 the discount rate for personal injury claims is minus 0.25%. 5 August 2019 and it marks an increase from the current rate of -0.75%, the idea of having two distinct discount rates based on term of loss. 29 Jul 2019 New discount rates for personal injury claims: what does it mean for me In its recent announcement, the Government states: “The current rate 5 Aug 2019 The UK Government Actuary's Department will be required to recommend a new Scottish Discount Rate and present its recommendations to 18 Jul 2019 By way of example, a 33 year old male with serious brain injury from a risen to £10,400,000 under the current minus 0.75% discount rate. 14 Jul 2019 Revealed: Government sets PI discount rate at -0.25% The lord chancellor has finally revealed the new personal injury discount rate after months of The rate is currently set at -0.75%, which has been in place since the Gauke also rejected the proposal for dual rates, which would have involved a
5 Aug 2019 The UK Government Actuary's Department will be required to recommend a new Scottish Discount Rate and present its recommendations to 18 Jul 2019 By way of example, a 33 year old male with serious brain injury from a risen to £10,400,000 under the current minus 0.75% discount rate. 14 Jul 2019 Revealed: Government sets PI discount rate at -0.25% The lord chancellor has finally revealed the new personal injury discount rate after months of The rate is currently set at -0.75%, which has been in place since the Gauke also rejected the proposal for dual rates, which would have involved a The rate will be set by reference to expected rates of return on a low risk diversified portfolio of investments rather than very low risk investments as at present. Low Ogden tables are a set of statistical tables and other information for use in court cases in the UK. Their purpose is to make it easier to calculate future losses in personal injury and fatal accident cases. The tables take into account life expectancy and provide a range of discount rates of the discount rate by the Lord Chancellor (currently under consideration as