Government slashes lump sum discount rate
The government has changed the discount rate applicable to personal injury lump sum compensation payments, to minus 0.75 per
cent from 2.5 per cent. The move has, not surprisingly, angered insurers and delighted plaintiff lawyers. From insurers’ point
of view, the government appears to have given with one hand and taken away with the other. Any benefits from promised reforms
to employment tribunals, whiplash and small claims limits have now been removed through the changes to the discount rate.
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