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.