Damages Bill introduced at Holyrood

Damages Bill introduced at Holyrood

Annabelle Ewing

Legislation intended to create a “clearer, fairer and more credible way” of setting of the personal injury discount rate for damages claims has been published today.

The personal injury (PI) discount rate is used to help calculate lump sum compensation to cover future losses such as future salary losses or future care costs in personal injury cases.

The Damages Bill, now introduced in the Scottish Parliament, attempts to address concerns that the current process for setting PI discount rate lacks transparency and has not been reviewed frequently enough – with the most recent change resulting in a substantial shift to the rate.

The bill proposes to:

  • Put in place a new methodology for calculating the discount rate which should be applied to such losses
  • Require the discount rate to be reviewed by the Government Actuary every three years
  • Give courts in Scotland the powers to impose periodical payment orders for future financial loss

Legal affairs minister Annabelle Ewing said: “This legislation is part of our wider programme of civil law reform which aims to ensure the system keeps pace with modern Scotland and the needs of its people.

“While the number of people affected by the discount rate is relatively small, we know that those cases tend to involve catastrophic injury with little prospect of the individual’s full recovery.

“That is why it is so important the law determining how the discount rate is set is clear, fair, transparent and credible.”

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