Pre-legislative scrutiny: draft personal injury discount rate clause Contents


Terms of Reference


1 Introduction

2 Background

Government consultations

3 Achieving “full compensation” for claimants

Government’s objective of “full compensation” for claimants

Are claimants being over-compensated?

Should the discount rate reflect claimant behaviour in practice?

Are claimants investing in low-risk diversified portfolios?

Definition of “low risk”

International comparisons

Periodic Payment Orders (PPOs)

4 Balancing the costs and benefits

Quantifying the costs and benefits

Social costs

Effect on equity

Additional costs to the state

Costs borne by vulnerable groups

Social benefits

Motor insurance premiums

Clinical negligence costs

5 Process

Roles in the decision-making process

Lord Chancellor

Panel members

Panel quorum

Frequency of review

First review

Timing of review

Setting the discount rate as risk-free rate

Differential discount rates

Management costs and investment advice

Measures of inflation

6 Consequences for the draft clause

Formal Minutes


Published written evidence

List of Reports from the Committee during the current Parliament

29 November 2017