In claims where there has been a serious or catastrophic injury and someone is unable to work, or will require medical care for the future, compensation will be sought to ensure that the person will have these needs met for the remainder of their life. When compensation includes an element of future loss of earnings or future medical care, a discount rate will be applied to any lump sum settlement obtained.

What is the Discount Rate?

The discount rate is used to adjust expected financial returns that could be earned on interest on this compensation as if it were invested. The purpose of the discount rate is to ensure a person is fairly compensated for the injuries they have suffered.   

Those who have suffered life-changing injuries understandably want to ensure the compensation they receive will ensure their needs are met for the rest of their life. At present, the Ministry of Justice is considering plans to adopt different discount rates. Typically, the longer investors are prepared to invest their money, the more risk they can take, and they therefore gain better returns. However, in cases where the compensation is likely to be the only available funds the injured person has, they will understandably not want to take any risks which could leave them running out of money for future care. It is therefore important that these people are the main focus in any decisions or changes to the discount rate.

What are Periodical Payments?

Periodical Payment Orders are one way of ensuring regular income for injured people as this ensures payment every year for the remainder of the injured person’s life. Martin Hanna of our office was involved in the first ever Periodical Payments Order case in Northern and has extensive expertise in dealing with these most serious types of cases.

A serious or catastrophic injury is likely to have a long-lasting impact on a person and their family's life.  Francis Hanna & Co Solicitors is one of Northern Ireland’s leading law firms when it comes to dealing with complex serious injury cases. We understand the devastating impacts such an injury can have on the lives of our clients and their families and work hard to secure compensation for our client's injury to help them get the best possible care, rehabilitation, and support available.   We are experienced in dealing with large and complex personal injury claims and will be able to advise what to do if you or a loved one have suffered a life-changing injury.

For advice and assistance, contact Martin Hanna on mhanna@fhanna.co.uk or Mary Muldoon on mmuldoon@fhanna.co.uk or call 028 9024 3901 for a free, no obligation discussion.