Warning: You currently have javascript turned off. Functionality of this website will be greatly reduced.

Lump sum damages could be next to go on MoJ’s list

The logo for the government's Ministry of Justice (MoJ)

The Ministry of Justice (MoJ) are considering changing the way successful personal injury claimants are allowed to receive their damages by proposing to bring in a system where, instead of receiving their money in one lump sum payment, they will in fact have their damages issued to them in smaller amounts over a selected period of time.

The suggestions come after the government revealed that it had initial evidence to suggest that successful claimants were investing their damages in mixed portfolios including, in some cases, higher return investments.

This news comes as the government are also considering whether to increase the discount rate which has been set at 2.5% since 2001.

Justice Minister Helen Grant has hinted that the MoJ are seriously considering this but any movement to do so will be met by strong opposition from the Association of Personal Injury Lawyers (APIL), who have previously threatened a to proceed with a Judicial Review before the original consultation was taken last year.

APIL have argued that due to the existing rate of 2.5% being in place for such a long period, without review, it was no longer relevant and had led claimants to be under compensated over the past 9 years as the yields on which they are based on are in fact lower.

The second part of the consultation, of which these possible changes will be subject to, is currently ongoing and will conclude on 7th May.

investors in people goldlexcel logoiso logo
© 2017 Scott Rees & Co. All Rights reserved. Scott Rees & Co are not responsible for any content on external websites.
Back to top