Date Announced For PI Discount Rate Review27-Jul-2017
The government has announced a date by which it is to make a decision on whether to revise the current discount rate for personal injury damages.
A date of 3rd August has been suggested for the MoJ to respond to the consultation which closed in May. It was revealed in a recent House of Lords debate that there had been 135 responses to the consultation on the discount rate.
Personal Injury Discount Rate Consultation
Justice Minister Lord Keen of Elie said it is was the hope of the government that the consultation would ensure a fairer system for both claimants and defendants, and it would keep true to the principle that claimants were paid ‘no more or no less than they should be’.
There was criticism of the decision made in February this year to amend the rate from 2.5% to -0.75% prior to a consultation. However, it was said that the previous Lord Chancellor, Liz Truss, had acted correctly under a legal obligation to amend the rate which was deemed outdated.
When the discount rate amendment was announced, the decision was faced with criticism from defendants, with suggestions it would impact on insurance premiums and the NHS. There was also criticism of the MoJ for failing to provide a financial impact statement based on the new discount rate.
Special Damages Awards
There are still contrasting views from both side of the fence, and there have been calls for the rate to be reviewed and set by a panel of experts rather than the Lord Chancellor.
Recommendations have also been made for the discount rate to be reviewed regularly to ensure there is neither over compensation nor under compensation.
When the announcement on the consultation is made on 3rd August it is widely expected that there will be a further amendment to the current -0.75% discount rate.
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