The Ministry of Justice (MoJ) has said that it will not be recommending a policy position or deciding on whether a dual/multiple PIDR should be introduced at this time.
The discount rate is used to calculate long-term compensation for serious injury victims. The MoJ this week published its response to a call for evidence on the rate, and will feed its summary of views received to an independent expert panel advising the Lord Chancellor on next steps. The next review of the discount rate must take place by July 2024.
Christopher Malla, partner at Kennedys, said that if the panel recommended change, his firm’s ‘preference would be for a dual rather than a more complex multiple rate.
‘Practitioners could apply it themselves, rather than having to instruct actuaries or economists as is the case in some of the other jurisdictions where we operate, namely Ireland and Hong Kong. It must be a simple system to allow practitioners to calculate to avoid an increase in legal costs.’
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