Reforms to compensation payouts announced
Measures to change the way compensation payouts are calculated have been unveiled by Lord Chancellor David Lidington.
The announcement follows responses submitted to the consultation paper, The Personal Injury Discount Rate: How it should be set in future, by the likes of the CII after it was controversially cut from 2.5% to -0.75% in March this year (the CII’s Discount Rate policy briefing can be read at: www.cii.co.uk/44770).
Based on the evidence currently available, the government expects that if a single rate were set today under the new approach, the real rate might fall within the range of 0% to 1%. The reforms are intended to make sure personal injury victims get the right compensation – and could also see significant savings for motorists through lower car insurance premiums and the NHS. The adjusted awards aim to put claimants in the same financial position they would have been in had they not been injured – they should receive neither more nor less than 100% compensation.
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The CII takes a look at what’s new on the policy and public affairs front this month
The UK Financial Conduct Authority (FCA) has launched a public awareness campaign highlighting the 29 August 2019 deadline to complain about payment protection insurance (PPI).
The UK Treasury Committee is to undertake an inquiry into the introduction and operation of Solvency II