The Government Actuary has published his determination of the Personal Injury Discount Rate in Northern Ireland concluding it should be set at RPI -1.5%. The report sets out his determination of the personal injury discount rate.
Purpose and use
Damages are awarded to claimants who have endured life-changing events which have led to serious and long-term injuries. The lump sum payments are intended to provide victims with full and fair financial compensation for all the expected losses and costs caused by their injuries.
Where a claim for future losses is settled as a single cash amount, the assessment of future losses and costs is converted into a lump sum allowing for the:
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period over which losses and costs are expected to be met
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assumed investment return that a claimant expects to earn on the lump sum award.
This assumed investment return is the personal injury discount rate.
People walking on a concrete floor outdoors.
GAD’s involvement
The report was prepared in accordance with the requirements of the Damages (Return on Investment) Act (Northern Ireland) 2022.
This sets out the way in which the Government Actuary should set the personal injury discount rate in Northern Ireland. Therefore, his role is as the ‘rate assessor’ as defined in the Act.
Before this the Damages Act 1996 provided for the Department of Justice in Northern Ireland to set the PI discount rate in Northern Ireland. This meant the PI discount rate reflected the average yield on Index-Linked Gilts