CHANGES TO THE DISCOUNT RATE: THE PRACTICAL IMPACT & THE STEPS THAT NEED TO BE TAKEN

Zenith PI: PERSONAL INJURY LITIGATION IN PRACTICE

Today the government announced a change in the discount rate from 2.5% to -0.75%.

This has a major impact upon the way that schedules for future loss are calculated.

PRACTICAL STEPS

The practical steps that need to be taken include:

  • Check and revise any existing schedules of damages that have any element of future loss.  The change in the discount rate could have a major impact on the claim for future loss.
  • Rebmark have drafted a new set of tables – Ogden 7 – Using New Discount Rate V2.  This is available from their website – here 
  • Remember if this re-calculation is going to involve the parties in additional work it is prudent to consider applying to revise the costs budgets.
  • In some cases the change in the multiplier may impact upon the overall value of the claim and an application will be needed to amend the value and (probably)…

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