This article is published as part of Capsticks’ Medical Malpractice and Casualty Forward View 2023.

The Ministry of Justice (MOJ) has issued a call for evidence to inform the decision-making process for its next PIDR review (due to be completed by July 2024).

What is likely to happen to the rate and what will be the impact?

When launching the call for evidence the MOJ described the case for setting different rates as ‘interesting’ – a higher rate for longer awards where expected returns are greater.

Dual rates are in use in Ontario, Jersey, Ireland and Hong Kong. The Government Actuary’s Department 2019 report (which formed part of the last review) considered dual rates with a lower rate for shorter and a high rate for longer awards. While the use of dual rates may reduce the chances of over or under compensation between claimants with different periods of damages, some instances are likely to still occur.

The review’s starting point will remain one of fairness and provision of 100% compensation to injured claimants – no more, no less. To achieve this the review will need to consider the rate of return that claimants actually achieve.

It will be interesting to see what (if any) evidence is supplied by those who invest on their behalf. The call for evidence closes on 11 April 2023.

Medical Malpractice and Casualty Forward View 2023

This article is part of Capsticks’ Medical Malpractice and Casualty Forward View 2023.

Read the other articles featured in this publication below:

• Spotlight on three appeal court decisions to look out for in 2023
• Concussion in sport: the next industrial disease claim?
• Courts will continue to take a robust approach to fraud, but defendants should be rigorous when assessing the strength of their case
• Private surgeons could face Covid-19 related claims
• Covid-19 public inquiry: private hospitals may face requests for statements and documents
• There could be an increase in the cost of care claims, but a decrease in the cost of accommodation claims
• Private hospitals and MedTech companies will need to keep an eye on emerging product and general liability risks
• New legislation may mean more clinical trials, but ‘lighter touch’ regulation and some simplified procedures
• Legal liabilities for transport of the future: e-scooters and self-driving vehicles
• Fixed recoverable costs (FRCs) – timetable delayed
• Civil Procedure Rules Committee (CPRC) may be the bearer of good news for defendants

Get in touch

Aiming to be the firm of choice for medical malpractice and casualty insurers, we advise and support on all aspect of claims and inquests.

To discuss how any of these issues may affect your organisation, please get in touch with Majid Hassan or Chery Blundell.