As those involved in personal injury litigation will know, the Personal Injury Discount Rate is an important tool used to ensure that people making claims are supported with their future financial needs.  This is because many people may depend on their compensation to support them for the duration of the injury and in some severe cases for the rest of their lives.

Historically there has been a single discount rate used for all cases, regardless of the size and duration of the damages awarded, and it has been argued that this can result in unfairness to claimants.  Personal injury awards are currently subject to a single rate set at -0.25%.

However, Justice Ministers are now looking at introducing a dual discount rate for PI damages which would depend on how long the effect of the injuries last.

The call for evidence which was produced by the Ministry of Justice to gather information relating to matters that may influence the personal injury discount rate, will examine issues relating to the introduction and use of a dual and/or multiple rate.  It will explore a variety of issues including whether different rates could be set for ‘heads of loss’ or by ‘duration of injury’ as well as looking at dual/multiple rate models currently in operation in other jurisdictions.

The call for evidence will last for 12 weeks and will close on 11^th April 2023.

Sadly, accidents continue to occur and as a well-established After the Event insurance (ATE) broker we can arrange ATE insurance for both lower value injury claims and serious injury claims.

External link:  Personal Injury Discount Rate: Exploring the option of a dual/multiple rate.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1128800/personal-injury-discount-rate-exploring-the-option-of-a-dual-multiple-rate.pdf

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Here at Box Legal we have competitively priced ATE insurance policies available for all types of personal injury claims.

The number and variety of cases we arrange cover for is always increasing and so please contact us to discuss any after the event insurance requirements. We are happy to discuss and develop ATE insurance for case types we do not already insure.

If you would like to speak to us or obtain further information then please call on 0870 766 997, or email info@boxlegal.co.uk