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 page was correct at publication on 21/12/2018. Any guidance 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 appoints new head of claims handling to continue success in defending cases

The Medical Defence Union (MDU) has appointed David Pranklin as its new head of claims handling.

Read more
News

GPs reminded of importance of notifying hospitals of advance decisions by patients

GPs are being reminded about the importance of notifying hospital colleagues of an advance decision by a patient, if they become aware that a patient has been admitted for treatment.

Read more
News

MDU says of indemnity consultation: If it ain't broke don't fix it

The Department of Health and Social Care’s proposal to mandate insurance as the only way of indemnifying healthcare professionals for clinical negligence claims is misconceived, says the Medical Defence Union (MDU).

Read more