The government will announce the result of its long-awaited review of the interest rate used to calculate discounts applied to personal injury compensation next month. The Ministry of Justice confirmed today it will make the announcement by 31 January – more than four years after closing a consultation on the issue.

The discount rate is set to calculate deductions from injured people’s compensation to reflect the interest the payments are assumed to earn.

The Association of Personal Injury Lawyers (APIL) has campaigned for years that the current rate – 2.5%, set by the lord chancellor in 2001 – is too high and penalises claimants.

APIL had taken the unusual step of starting legal action amid concerns about the wait for the review, and the organisation said it was relieved action will finally be taken to re-evaluate the discount rate.

‘People with lifelong injuries are continuing to be undercompensated, in some cases, by hundreds of thousands of pounds, because successive governments have dragged their heels and failed to review the discount rate to reflect changes in the economy,’ said Neil Sugarman, president of APIL.

The rate is based on yields generated by index-linked government stock.

Peter Todd, of London firm Hodge Jones & Allen, who acted for APIL, said the hope is the new rate will fairly reflect risk-free index-linked government investment bond returns and therefore be substantially reduced.

‘I have little doubt that this long-running review of the discount rate would have dragged on, unless APIL had started legal action challenging the delay,’ he said.

‘I am delighted that a date for the conclusion of the review has now finally been announced.’

A Ministry of Justice spokesperson said: ‘The lord chancellor is reviewing the discount rate applied to personal injury claims to ensure personal injury claimants are properly compensated. The results of that review will be announced in due course.’

Source: lawgazette.co.uk

 

Subscribe to Updates
Subscribe to:
Like   Back to Top   Seen 7 times   Liked 0 times

Subscribe to Updates

If you enjoyed this, why not subscribe to free email updates ?

Subscribe to Blog updates

Enter your email address to be notified of new posts:

Subscribe to:

Alternatively, you can subscribe via RSS

‹ Return to Blog

We never share or sell your email address to anyone.

I've already subscribed / don't show me this again

Recent Posts

Lincolnshire firm fined after worker fell 7m from forklift truck

| 04th September 2017 | Personal Injury

A worker suffered serious injuries when he fell while carrying out maintenance work at a Lincolnshire seafood processing factory, a jury was told. Virginius Kurselis was standing inside a box held up by a forklift truck when he fell seven metres while painting at the Fishgate Ltd factory at Brookenby near Market Rasen. Mr Kurselis spent four weeks on hospital and underwent two operations as a result of injuries he received as a result of the fall in July 2013. His left leg was shattered and his right foot was broken. He also suffered a cracked pelvis and a dislocated right arm. Robert Stevenson, prosecuting, said that Mr Kurselis was employed as a packer but was asked to paint gutterings and down pipes in preparation for a visit from a customer. Mr Kurselis initially used a ladder but changed and stood in a box which was lifted by a forklift truck to the required height. Mr Stevenson said: “Unfortunately the box tipped forward and Mr Kurselis fell. “Mr Kurselis was employed as a factory operative. His role was as a packer but on the day he was asked to do some painting. “The company was expecting a visit from a new customer and wanted the building to look more presentable. “He wasn’t given any training as to how to safely carry out that work. “There was an absence of any instruction and there was an absence of any supervision.” Fishgate Ltd of Brookenby Business Park, Binbrook, denied a charge of failing to discharge a duty of health, safety and welfare of an employee. The firm was convicted by a jury following a short trial and fined £100,000 and ordered to pay £19,032 prosecution costs The company is currently in administration and was not represented in court. Recorder Paul Mann QC, passing sentence, said: “Mr Kursilis was given no advice as to how to do this safely and no equipment apart from a tin of paint and a brush. “This was an accident waiting to happen. “He was very badly injured. He could so easily have been killed.”   Lincolnshire Reporter...

Five people hospitalised after serious road accident on the A18.

| 26th August 2017 | Personal Injury

  Five people, including two children, have been taken to hospital following a crash on the A18.   The incident happened at around 5.15pm on Wednesday, July 26 after a two vehicle crash was reported close to Hall Farm in Melton Ross Barnetby, near Humberside Airport.   A grey Nissan Navara and a silver coloured Audi estate car collided and a road closure was required to enable the attendance of emergency services.   The injuries to the children are thought to be minor, however one person is believed to have sustained serious injuries.   A man believed to be the driver of the Nissan left the scene of the collision and enquiries were undertaken to locate him without success.   Those enquiries are ongoing.   The road re-opened at 10.30pm.   Anyone with information is asked to call Humberside Police on 101 quoting log 397 of July 26.   Humberside Police originally said that the Audi driver fled the scene of the crash. However, they have now said that they believe the Nissan driver left the scene.   Source – Lincolnshire Reporter...

Lincolnshire firm fined after worker fell 7m from forklift truck

| 03rd August 2017 | Personal Injury

Lincolnshire firm fined after worker fell 7m from forklift truck A worker suffered serious injuries when he fell while carrying out maintenance work at a Lincolnshire seafood processing factory, a jury was told. Virginius Kurselis was standing inside a box held up by a forklift truck when he fell seven metres while painting at the Fishgate Ltd factory at Brookenby near Market Rasen. Mr Kurselis spent four weeks on hospital and underwent two operations as a result of injuries he received as a result of the fall in July 2013. His left leg was shattered and his right foot was broken. He also suffered a cracked pelvis and a dislocated right arm. Robert Stevenson, prosecuting, said that Mr Kurselis was employed as a packer but was asked to paint gutterings and down pipes in preparation for a visit from a customer. Mr Kurselis initially used a ladder but changed and stood in a box which was lifted by a forklift truck to the required height. Mr Stevenson said: “Unfortunately the box tipped forward and Mr Kurselis fell. “Mr Kurselis was employed as a factory operative. His role was as a packer but on the day he was asked to do some painting. “The company was expecting a visit from a new customer and wanted the building to look more presentable. “He wasn’t given any training as to how to safely carry out that work. “There was an absence of any instruction and there was an absence of any supervision.” Fishgate Ltd of Brookenby Business Park, Binbrook, denied a charge of failing to discharge a duty of health, safety and welfare of an employee. The firm was convicted by a jury following a short trial and fined £100,000 and ordered to pay £19,032 prosecution costs The company is currently in administration and was not represented in court. Recorder Paul Mann QC, passing sentence, said: “Mr Kursilis was given no advice as to how to do this safely and no equipment apart from a tin of paint and a brush. “This was an accident waiting to happen. “He was very badly injured. He could so easily have been killed.”   Lincolnshire Reporter...

Worker loses fingers fixing a gate

| 28th July 2017 | Personal Injury

Company fined £8,000 after worker loses fingers fixing a gate A company has been fined £8,000 with cost of £2,080 following a Health and Safety Executive (HSE) investigation into the loss of an employee’s two middles fingers. After LKAB Minerals (Richmond) Ltd’s main entrance gate broke, they assigned the worker to fix it, during which both his fingers were severed. The HSE found the company failed to: • identify the risks of the worker doing this task • devise safety measures to ensure a safe way of working • provide information, instruction and training regarding the task • ensure the workers has the correct supervision and monitoring LKAB Minerals pleaded guilty to breaching Section 2 (1) of the Health and Safety at Work Act 1974 at the Sheffield Magistrates’ Court. LexisNexis and LNB News...