Increase to Scotland’s personal injury discount rate
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Gordon Dalyell
Scotland’s personal injury discount rate has been set at +0.5 per cent following a review.
The new rate is welcome news for insurers and bad news for personal injury claimants, being an increase from the -0.75 per cent rate set in 2019.
The rate is used to determine lump sum damages awards to people who suffer serious and long-term personal injury.
Gordon Dalyell, APIL treasurer and executive committee representative for Scotland, said: “It is now even more likely that a catastrophically injured person will not receive full compensation and therefore be unable to meet the costs of their necessary care and support.
“This increase in the discount rate has potentially significant consequences for any one of us who may suffer life-changing injuries because of the negligence of others.”
Northern Ireland’s personal injury discount rate has also been set at +0.5 per cent, having previously been -1.5 per cent.
Belfast-based Clyde & Co partner Paddy Connolly said: “In both countries the new rate better reflects the improved market conditions within which claimants have been investing their damages. Hopefully England and Wales will follow with a similar change.”
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