Northern Ireland Personal Injury Discount Rate Set at -1.5%
The personal injury discount rate in Northern Ireland has been changed to -1.5%. The rate was set at -1.75% in March 2021 as an interim measure, already a significant change from the previous rate of 2.5% which had been in place since 2001.
The Justice Minister Naomi Long commented: “It is important that those members of our society who have sustained serious injuries through no fault of their own are fully compensated for their future financial loss, whilst also ensuring that the way this is calculated is fair to Defendants”.
It seems to us that a rather short-sighted view has been taken, particularly when considering the impact that this will have not just on insurers writing policies in Northern Ireland and those considering writing policies in Northern Ireland, but also public bodies and potentially every policyholder in Northern Ireland.
It is important to note that under the framework the rate will be reviewed on a regular basis. Therefore it is essential that compensators have their say on the implications of the discount rate and we will support you with this.
The next planned review of the discount rate will commence in July 2024.
Horwich Farrelly Northern Ireland have a significant number of high value cases involving Senior Counsel and will continue to ensure that client’s views are represented.
For further details on the new discount rate or our services in Northern Ireland please contact Matthew Fitzpatrick.