Rogers & Norton News
The discount rate is the rate which is used to calculate the amount by which a future loss (such as loss of income or care costs) needs to be multiplied to calculate and ensure the claimant has sufficient monies for their future needs. It should assume a cautious investment and for far too long the rate for calculating future loss multipliers has been set at 2.5%, which is currently a very optimistic rate of return. The duty to set the discount rate rests with the Lord Chancellor and for some time the review of the rate currently set at 2.5% has been called for. Indeed it was only after initial steps were taken to seek a judicial review of the failure to make a decision that the Lord Chancellor announced on the 27th February 2017 that the rate for calculating future loss multipliers would reduce to minus 0.75.
The significance of this is that claims for future loss will now be greater and will more appropriately ensure that were clients are receiving damages for future loss, that they have enough damages for the purpose for which they are being paid and not too little and likely to run out, as a result of it being assumed they will achieve a greater investment return on monies invested than is reasonably achievable taking a cautious approach.
As a result of this change the Personal Injury and Clinical Negligence team at Rogers & Norton have secured the latest Ogden tables which are calculated using the new discount rate and are in the perfect position to advise clients on the true value of their personal injury claim and in particular future losses.
Mark Hambling is a Senior litigator with the Association of Personal Injury Lawyers and can be contacted on firstname.lastname@example.org or on 01603 675637.