Alison Cassidy, partner at BLM in Belfast, examines proposals to slash the personal injury discount rate in Northern Ireland. The Minister for Justice in Northern Ireland, Naomi Long MLA, has asked officials to undertake a statutory consultation with the Government Actuary and the Department of Finance on a proposal to change the discount rate, which still stands at 2.5 per cent, to minus 1.75 It has been a year since the government bowed to the inevitable and changed the discount rate for compensation payments for serious injury victims, from 2.5 per cent to minus 0.75 per cent. After an injury, compensation is meant to ensure that the individual is put back in a position financially as if the accident had never occurred. The change, which came into effect in England and Wales on 20th March 2017, will radically change the ‘discount rate’ from 2.5% to – 0.75%. The discount rate is expected to change here in Northern Ireland following the appointment of a new Justice Minister, alternatively in the interim the Secretary of State may be petitioned to implement the change in this jurisdiction. Hong Kong has rates of minus 0.5% for losses of less than five years, 1% for losses of between five and 10 years, and 2.5% for losses of more than 10 years. There are divergent approaches even within the United Kingdom. Northern Ireland has a prevailing discount rate of 2.5%. Ireland update: split discount rates here, PPOs on the way Posted on November 6, 2015 by BLM The decision yesterday of Ireland’s Court of Appeal to uphold personal injury discount rates of 1.5% and 1.0% will have significant implications. Given the Supreme Court's refusal to hear this appeal the discount rate now stands at 1%. UK Ministry of Justice Reduction of Discount Rate to -0.75%. On 27 February 2017 the UK the Ministry issued reasons for setting the discount rate at minus 0.75%. When assessing lump sum awards for personal injury claimants, courts take into account the net rate of return (discount) that the claimant might expect to receive from a reasonably prudent investment of lump sum compensation. Since 2001, this rate has been 2.5%.
Home / Latest News / The Ogden rate or Discount rate – What is It? When assessing lump sum awards for personal injury claimants, courts take into account the net rate of return (discount) that the claimant might expect to receive from a reasonably prudent investment of lump sum compensation. Huw Evans, director-general of the Association of British Insurers, said: "This is a welcome reform proposal to deliver a personal injury discount rate that is fairer for claimants, customers and Thus - in theory at least - the Lord Chancellor’s -0.75% rate will not apply in Northern Ireland from 20 March. Given the current elections to the Assembly, and the risk of direct rule if no Assembly Government is formed, it is far from easy to predict when any decision might be taken in Northern
Severely injured people in Northern Ireland are subject to far greater deductions on their compensation because the ‘discount rate’ has been left at 2.5 per cent for many years. The Lord Chancellor has this week set a new rate for England and Wales of minus 0.25 per cent and a new rate is anticipated for Scotland soon. It was last revised in 2017, when the discount rate was lowered from 2.5 per cent, which continues to be the discount rate in Northern Ireland. Gordon Dalyell, president of the Association of Personal Injury Lawyers (APIL), told the Belfast Telegraph that the disparity “needs to be addressed immediately”. The Minister for Justice in Northern Ireland, Naomi Long MLA, has asked officials to undertake a statutory consultation with the Government Actuary and the Department of Finance on a proposal to change the discount rate, which still stands at 2.5%, to minus 1.75%.
See the News section for an update on the discount rate in Scotland. more robust pre-action protocol for personal injury claims in Northern Ireland have been damages in personal injury litigation in Hong Kong The discount rate is essential to the actuarial calculation of the award. Scotland and Northern Ireland. 2 Oct 2019 and Wales; -0.75% in Scotland and 2.5% in Northern Ireland. https://www. gov.uk/government/news/personal-injury-discount-rate-in- See White, Irish Law of Damages for Personal Injuries and Death, (Dublin, 1989), upheld Hamilton J's approach and adoption of a discount rate of 2.5% stating: Dalton v South Eastern Railway, Pym v Great Northern Railway Company. Whole life multipliers at current Personal injury discount rate (PIDRs) -- illustrative With no government sitting in Northern Ireland, their rate has not changed. REVIEW OF PERSONAL INJURY DISCOUNT RATE. The Minister of Justice in Northern Ireland has asked officials to undertake a statutory consultation with the
See White, Irish Law of Damages for Personal Injuries and Death, (Dublin, 1989), upheld Hamilton J's approach and adoption of a discount rate of 2.5% stating: Dalton v South Eastern Railway, Pym v Great Northern Railway Company. Whole life multipliers at current Personal injury discount rate (PIDRs) -- illustrative With no government sitting in Northern Ireland, their rate has not changed. REVIEW OF PERSONAL INJURY DISCOUNT RATE. The Minister of Justice in Northern Ireland has asked officials to undertake a statutory consultation with the High Court Average Personal Injury Awards Drop by 29% in 2018 Assessment of General Damages in Personal Injury Cases in Northern Ireland again applying RPI at its present rate, to the midline of the next 5 years on the basis that into the future there must be an adjustment of the discount for accelerated receipt. 5 Mar 2020 The Discount rate in NI has not been changed since 2001. implications for not just high value personal injury claims but also for insurers who Actuaries have been involved in personal injury awards in the debate of the discount rate and looks at the necessarily actuarial aspects of allowance for mortality There are no official life tables produced for Northern Ireland, or the UK as a.