Protecting the Long Term Financial Future of Seriously Injured Clients
The government has this week opened a consultation on how the personal injury discount rate should be set in the future, according to an announcement by Justice Secretary Elizabeth Truss.
The consultation is aimed at people and organisations with an interest in personal injury claims and damages in the UK.
The discount rate is used to help calculate lump sum payments of damages in personal injury claims.
The launch of the six week consultation comes after the Justice Secretary lowered the rate from 2.5% to minus 0.75% last month.
The new rate came into effect on 20 March 2017. Prior to this, the discount rate was last set in 2001. The revision was therefore long overdue.
Before the new rate came into effect on 20th March 2017, seriously injured claimants and their families have, for many years, faced uncertainty over their future and the very real possibility that their money would run out. Claimants should not be expected to run investment risks with money which a judge has declared is essential to their future health and well being - and yet this has been the reality of their situation.
A powerful insurance lobby is now trying to persuade the government to adjust the discount rate in its favour. Their intention is clear - to maximise profit. We must not let it happen.