Lord Chancellor lowers discount rate for personal injury claims

The Lord Chancellor has announced changes to personal injury compensation payments.
With effect from 20 March 2017, the discount rate for personal injury claims will change from 2.5% to minus 0.75%. The discount rate is a calculation the court applies when finalising the compensation amount.

The Ministry of Justice’s announcement comments that the rate change is likely to have a significant impact on the insurance industry. The Lord Chancellor’s reasons for the rate change can be found here.