Review comes under spotlight
According to Insurance Times, Lord Chancellor Elizabeth Truss has delayed announcing the final findings of its controversial personal injury discount rate.
The discount rate review was originally expected to be complete and the findings announced on 31 January 2017 but are now expected to be delivered in February. The Ministry of Justice said the review had ‘taken longer than anticipated’.
Earlier this month, the Association of British Insurers (ABI) lost its final attempt to delay the government’s decision on the review of the discount rate. The Association of Personal Injury Lawyers (APIL) welcomed the ruling.
The personal injury discount rate is used to calculate the amount that should be deducted from a claimant’s lump sum compensation award, based on the assumption that they will invest the lump sum and receive income from the investment return.
The rate, which currently stands at 2.5% has not changed since being set in 2001.
The Lord Chancellor has commented that any change to the rate could have ‘profound financial consequences’.