The Lord Chancellor has announced a further proposed change to the Ogden rate legislation to amend the rate from what is -0.75 % to between 0 and 1% under new draft legislation. The rate is used to adjust compensation awards for victims of serious personal injury, according to the amount they can expect to earn by investing it.
The proposals set to progress to legislation through a draft bill include some changes that BIBA called for on behalf of their members. The planned draft legislation however will take time to pass through the legal process with BIBA pushing for it to be moved along as speedily as possible to end the uncertainty for clients bought about by the significant underinsurance risk and increase to premiums that the February’s discount rate change caused.