Even under self-inflicting circumstances, suffering an injury or illness is a distressing experience. When the fault for personal injury lies with another individual or company, however, the torment is significantly heightened. Compensation is needed to cover loss of earnings, lifestyle limitations, medical care, rehabilitation or ongoing support arrangements.
Compensation for personal injury is typically awarded as a lump sum payment, with the final settlement figure taking into account interest which can be accrued through saving and investment over time, to avoid over-compensation. This means that calculations are subject to a reduction by a set discounted rate.
The general discount rate is defined by the Lord Chancellor, although occasionally courts select a different rate more appropriate to an individual case. The discount rate is presently set at 2.5% but, for various economic reasons, this is now considered too high.
With this in mind, a consultation has been launched by the Ministry of Justice to invite views on the way in which the discount rate is calculated, which will ultimately define the new rate. In turn, the rate may increase or decrease the sums payable in awards of damages for personal injuries.
Click here to submit your view by the 23rd October 2012 deadline.
For more information on the personal injury damages consultation, to enquire about your rights to claim for an accident, or to enlist expert representation to pursue a claim, please contact Farani Taylor on +44 (0) 20 7242 1666.