Member Login  |   Join Us  |  Resources  |  FAQs  |  News  |  Events  |  Contact Us  


  Search for a Solicitor Advocate

 contact@solicitoradvocates.org

Follow us   

 

General

Damages (Investment Returns and Periodical Payments) (Scotland) Bill 04/12/2018 Those who have suffered the trauma of personal injury should have their compensation calculated in a fair and transparent way, according to a report by a Holyrood Committee.

Damages (Investment Returns and Periodical Payments) (Scotland) Bill

Those who have suffered the trauma of personal injury should have their compensation calculated in a fair and transparent way, according to a report published this week by a Holyrood Committee.

The Economy, Energy and Fair Work Committee carried out an inquiry into the Damages (Investment Returns and Periodical Payments) (Scotland) Bill. The Committee agreed with the principles of the Bill, which would reform the law so that the UK Government actuary would set a discount rate for those receiving compensation.

The discount rate applies to compensation awards for future financial losses – such as ongoing care costs or lost earnings. It adjusts the amount of compensation paid to a victim to reflect the fact that they can invest the money to generate a return. The discount rate has the biggest impact on those who have suffered the most catastrophic injuries, and on those who pay compensation, such as insurance companies and the NHS.

Victims of personal injury already take on a number of risks in the process of achieving compensation for their personal injury, such as ensuring their award lasts their life expectancy and dealing with increasing inflation costs. The Committee concluded that the process should be fair and transparent, and that they should not have to carry undue risk.

In the report the Committee also:

  • welcomes the additional clarity and transparency provided by having the method for calculating the discount rate set out in legislation.
  • accepts that the provisions of the Bill have been formulated to offer a standardised approach to work in the interests of fairness and strike a balance between pursuer and defender interests.
  • seeks more detail from the Scottish Government on a commitment to regularly analysing the 30-year assumed period of investment, including the degree of divergence that would suffice for it to introduce more than one interest rate.
  • believes that the Discount Rate should be reviewed every five years, rather than three.
  • welcomes the provision for a court power to impose a periodical payment order (PPO). It asks the Scottish Government how it will promote the use of PPOs.

“Although the number of personal injury cases where the discount rate applies is small, the importance of the process to the individuals and families concerned is considerable,” said Convener of the Economy, Energy and Fair Work Committee, Gordon Lindhurst MSP. “The Committee welcomes the introduction of this legislation and are content that it will in principle achieve fairness and transparency across a range of cases and for both sides.”

More details can be found here.

 

Find a Solicitor Advocate
Looking for a solicitor advocate to
represent you or your client?
Learn more
 
 

Sitemap  |  Privacy and legal  |  Accessibility  |  Cookies Policy  |  Terms and Conditions  |  Scam Alert

© Copyright 2012 The Society of Solicitor Advocates

Website by Red Towers (Scotland) Limited