Assessing the damage.
The House of Lords has taken the unprecedented step of fixing the discount rate for multipliers in personal injury cases at 3%. Lyndsey Mackie says this will cause a hike in motor premiums.
On 16 July 1998, the House of Lords dealt a heavy blow to liabilityinsurers by fixing the discount rate for multipliers in personal injury
cases at 3%. This replaces the conventional approach of discounting
multipliers for future loss by between 4% and 5% to reflect the return on
investment of the plaintiff's damages.
Delivering their judgment in the consolidated appeals of Wells v Wells,
Thomas v Brighton Health Authority and Page v Sheerness Steel, the Lords
acknowledged that "the implications
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