Personal Injury Solicitors

Insurers hope to bring PI Reform back into the fold with the new DUP-propped up Theresa May Government, with suggestions that new provisions could address concerns raised about the reduced discount rate.

Nigel Teasdale, President of the Forum of Insurance Lawyers (FOIL) and Partner at DWF, said that Brexit should not steal the government’s attention away from other key matters, such as PI reform.

Teasdale has suggested that The Prisons and Courts Bill, halted in April at the dissolution of Parliament, could be used to introduce new provisions that address concerns surrounding the reduced discount rate announced by former Lord Chancellor Liz Truss earlier this year.

In February 2017, Truss announced that the government would be cutting the “Ogden” discount rate from 2.5% to -0.75%, which was argued to likely result in a significant increase in the value of compensation claims awarded to successful personal injury claimants.

The Ogden rate is the assumed rate of return that a personal injury client will receive on investing a lump sum in the event that their claim is successful. This rate therefore underpins the compensation formula, and will only apply to those clients who have suffered serious or life changing injuries including a claim for future loss of earnings, pension or care. The discount rate is applied to claims for future loss of earnings, pension or care and it is therefore crucial in determining the amount to be awarded in a successful personal injury claim – that is, the amount to be paid by insurance companies or public sector bodies, such as the NHS or Government.

In March 2017, we saw these changes take shape in practice, with the first claimant, a 10-year-old schoolgirl with cerebral palsy following complications at birth, being awarded a £9.3m settlement. This was an increase from what would have been a £3.8m settlement prior to the changes made by the Ministry of Justice.

The debate as to whether the new discount rate is a good idea has been subject to strong and passionate argument on both sides. Those for it argue that this is only fair for those who suffer life-changing injuries, while those against point out the detrimental impact this will have on the health service and insurance companies.

However, as Teasdale suggests, the debate may not yet be over, with adjustments to the new discount rate still a possibility to alleviate the concerns of insurance companies.

Rebecca Thomas, Director of Clinical negligence at Duncan Lewis Solicitors states:

“The amendment to the discount rate was long overdue and only came about after the Association of Personal Injury Lawyers (APIL) commenced legal action against the Lord Chancellor. Seriously injured Claimants have been undercompensated for many years as a result of the Government’s failure to review the discount rate and the insurance industry is understandably putting pressure on the Government to intervene”.

Rebecca Thomas is a Director of Clinical Negligence at Duncan Lewis. Rebecca has over 20 years’ experience in her field and represents clients in a wide range of cases including claims involving cosmetic and dental negligence, surgical and orthopaedic injuries arising from delay, misdiagnosis or negligent spinal surgery, gastrointestinal and ophthalmic surgery.

Duncan Lewis Personal Injury Solicitors

Duncan Lewis Personal Injury Solicitors have extensive experience representing clients who have sustained injuries as a result of accidents. Duncan Lewis’ no win no fee personal injury solicitors are proud of their reputation for being caring and considerate and for working tirelessly to achieve the best possible outcome for their clients. Personal injury claimants usually have three years from the date of the injury to make a claim for accident compensation. Because of the limitation period for personal injury claims, it is important to seek legal advice from Duncan Lewis personal injury solicitors as soon as possible if you are injured in an accident. Family members can call Duncan Lewis for advice on making a claim if someone close to you has been injured and is still recovering in hospital.

For expert legal advice call Duncan Lewis Personal Injury solicitors on 0333 772 0409.