Following a recent review, Scotland’s personal injury discount rate has been set at +0.5 per cent. Though likely good news for insurers, this will likely prove disadvantageous to personal injury claimants, being an increase from the -0.75 per cent rate set in 2019.
The rate is used to determine lump sum damages awarded to people who suffer serious and long-term personal injuries and is a crucial mechanism in fulfilling the longstanding common law principle that when someone is wrongfully injured, they receive total damages, including what is needed for their likely future financial needs.
What is a Personal Injury Discount Rate?
PIDR is applied to account for the amount that would be expected to be earned from investing that lump sum. The award, as adjusted, should put the claimant in the same, if not a similar, financial position that they would have been in had they not been injured, without under-or-over-compensating them. For more guidance on the Personal Injury Rate, click here.
APIL treasurer and executive committee representative for Scotland, Gordon Dalyell, said: “It is now even more likely that a catastrophically injured person will not receive full compensation and therefore be unable to meet the costs of their necessary care and support.
“This increase in the discount rate has potentially significant consequences for any one of us who may suffer life-changing injuries because of the negligence of others.”
Northern Ireland’s personal injury discount rate has also been set at +0.5 per cent from its previous -1.5 per cent.
Justice Minister Naomi Long said: “It is important that those members of our society who have sustained serious injuries through no fault of their own are fully compensated for their future financial loss, whilst also ensuring that the way this is calculated is fair to defendants.
“Given changing economic conditions, it is a benefit to both claimants and defendants that the discount rate is reviewed on a regular basis to make sure this important calculation remains as accurate as possible, in order that the principle of 100% compensation – no more and no less – is maintained in Northern Ireland.”
Though it is yet to be confirmed, experts expect the PIDR to reach England sometime soon. Regardless of any changes that are likely to happen to the PIDR either soon or in the distant future, you can rest assured that Bridge McFarland LLP can still assist you in seeking the level of compensation you deserve (see below for details).
To learn more about the PIDR, click here: Increase to Scotland’s personal injury discount rate
APIL Accredited Personal Injury Solicitors
Bridge McFarland LLP is a Lexcel-accredited law firm, and multiple solicitors in our personal injury team are professionally accredited by the Law Society and APIL.
Hopefully, injuries sustained either to yourself or a loved one are of less consequence than of the kind that warrants compensation. However, if you are affected by a life-altering injury that impacts your physical or mental health, contact us immediately. Some injuries can be life-changing, if not fatal, and it is essential to note that not all the damage that can be inflicted on a person is visible; many injuries are psychological and can have just as much of an effect on a victim’s ability to live their life as physical injuries.
Our experienced lawyers can provide you and your family with specialist legal advice if you or someone you care about has suffered an injury from an accident at work, road traffic accident, medical negligence or any other accident that wasn’t your fault. Claiming compensation can help meet your needs following a serious injury and help you access essential ongoing support.
For more information about how Bridge McFarland LLP can help you, please call 0800 987 8800 or email enquiries@bmcf.co.uk and speak to our experienced team.
