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The Government proposes to maintain the principle that claimants should receive 100% compensation for losses they incur. It proposes that the discount rate applicable to lump sum damages invested by claimants should no longer be set with reference to returns from Index Linked Government Securities. Instead the draft legislation provides that the discount rate should be set on the assumption that claimants will invest lump sums in "low risk" investments, and having regard to actual investments made by claimants.
Evidence given by Richard Cropper, Personal Financial Advisers, Brett Dixon, President, Association of Personal Injury Lawyers, Professor Victoria Wass, Martin White, Institute and Faculty of Actuaries, Huw Evans, Director General, Association of British Insurers, Emma Hallinan, Director of Claims and Legal, Medical Protection Society, David Johnson, The Forum of Insurance Lawyers, Lord Keen of Elie QC, Ministry of Justice spokesperson
Justice Committee publishes report on draft personal injury discount rate