MoJ launches discount rate consultation

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The Ministry of Justice (MoJ) is seeking evidence and opinions on how the personal injury discount rate should be set following passage of the Civil Liability Bill into law.

The Civil Liability Bill passed through the House of Lords last month with no amendments. The legislation looks set to receive royal assent soon.

Under the Civil Liability Bill, the calculation behind the personal injury discount rate, which is currently set at -0.75%, will away from ‘very low risk’ to ‘low risk’ investments, to better reflect claimant investment habits.

An expert group will also be formed to advise on the personal injury discount rate’s level every three years.

The MoJ has set a deadline of 30 January for the consultation. In particular, the ministry is seeking up-to-date data and information on the investments available to claimants, investment advice provided to claimants, investments made by claimants and model investment portfolios.

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Mark Dugdale is the editor of Claims Media. Mark welcomes articles, letters or feedback from readers and can be reached via mark.dugdale@barkerbrooks.co.uk