Monday, February 27th, 2017

Change of the Personal Injury Discount Rate

The Lord Chancellor’s Department has announced that with effect from 20th March, the discount rate will reduce to -0.75%. This will have a dramatic and profound effect upon the level of settlements or judgments where the Ogden tables are to be used. 

It remains to be seen whether the Lord Advocate will, as he has invariably in the past, adopt the discount rate. Further, it has been made clear by the insurance industry (see previous posts on Compass website) that they intend challenging the decision by judicial review. Estimates are that this will cost NHS England a further £1bn per annum, and this may affect the decision of the Lord Advocate to either delay or not follow the Lord Chancellor’s Department.

For those who are pursuing, there is clearly a benefit in waiting if they can until it is finalised in Scotland; and for those defending there is a benefit in settling at current rates. 

A link to the announcement can be found here.

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