Mark Holt looks at the turbulent history of the Ogden Discount Rate & calls for clarity
- History of the Ogden Discount Rate.
- Argues different rates should be used for different life expectation categories of victim.
The future for personal injury and clinical negligence solicitors and their injured clients remains uncertain as the debate surrounding the Ogden Discount Rate continues.
The Ogden Discount Rate is used to calculate the size of the lump sum damages payments in a personal injury claim. It is an assumption on the amount of interest or investment return that can be expected on money that is invested. Essentially, the higher the discount rate, the lower the lump sum and vice versa.
When someone suffers a catastrophic injury, whether in a road accident, through medical negligence or at work, they are entitled to damages to help them adapt to their new life.
Reactions to change
There has been much publicity, by many authors, around the history of the discount rate and the factors, and the impact on settlements since the discount rate was cut to
