MDU hopeful discount rate reform is around the corner

Reform is expected to the personal injury discount rate, the MDU explained

Welcoming the news that the Civil Liability Act has received royal assent, MDU director of professional services Dr Matthew Lee said:

'The Civil Liability Act includes reforms to the process of setting the personal injury discount rate (PIDR), which is the formula for calculating personal injury compensation payments. It is welcome news that the Act has royal assent and the discount rate section came into effect yesterday.

'The PIDR, was drastically reduced by 3.25% in 2017, which has driven up the cost of clinical negligence claims dramatically. It has doubled and, in some cases, trebled high value claims making £37m the NHS's highest award to date. The Act requires a change to the way the rate is set and should go some way to redressing the financial damage caused to the NHS and GP indemnity costs by the PIDR reduction.

'The Lord Chancellor has 90 days to start the rate review and the determination must be made within 140 days after that. While this is welcome news, we don't expect the rate to be restored from its current level of -0.75% to the previous rate of 2.5%. Awards will still be considerably higher than before.

'The Civil Liability Act is a step in the right direction but we still need radical legal reform to restore balance and fairness to the way compensation is awarded.'

Find out more at themdu.com/faircomp

This guidance was correct at publication 21/12/2018. It is intended as general guidance for members only. If you are a member and need specific advice relating to your own circumstances, please contact one of our advisers.

You may also be interested in

News

MDU hopeful discount rate reform is around the corner

Reform is expected to the personal injury discount rate, the MDU explained

Read more
News

The MDU advises GPs to 'mind the gap' when the state-backed indemnity scheme is introduced

The Medical Defence Union (MDU) is reminding GPs that they will continue to need membership of a medical defence organisation following the introduction of state-backed indemnity in April 2019.

Read more
News

Spiralling cost of claims means GPs can no longer afford professional indemnity, MDU says

Nearly 9 out of 10 GPs (88%) of 879 responding to a survey on professional indemnity say they would like to see the NHS funding the cost of GP clinical negligence claims in future by introducing NHS indemnity for primary care, the Medical Defence Union (MDU) revealed today.

Read more