BRITAIN’s Ministry of Justice says it plans to change the discount rate applied to personal injury lump sum compensation payments to minus 0.25 per cent from minus 0.75 per cent.

It said that the decision follows a review which was started by the Lord Chancellor earlier this year and follows lobbying from auto insurers whose profits were hit by the decision to cut the so called ‘Ogden Rate’ from 2.5 per cent  in 2017.

A lower rate requires insurers to make larger lump sum payments on personal injury claims, as it assumes lower annual investment returns for that amount. (Reuters/NAN)

– July 15, 2019 @ 11:15 GMT |