PRESS RELEASE
For immediate release: Thursday, 30 March 2017
MDDUS has given a cautious welcome to the Ministry of Justice consultation document on how the personal injury discount rate should be set in future.
The consultation, published in collaboration with the Scottish Government, recognises the scale of criticism caused by the Lord Chancellor's recent decision to reduce the rate precipitately to minus 0.75% and accepts the need for future decisions on the way forward to be far more informed by empirical evidence of how damages awards are actually invested.
Commenting on the document, MDDUS Chief Executive Chris Kenny said:
"We welcome the speed and thoroughness with which this document has been produced. It raises all the right questions which need to be resolved if a more transparent, balanced and evidence-based system is to be put in place for the future.
“We also welcome the Lord Chancellor's commitment to early action and expect that all stakeholders will want to hold her to account in ensuring that this is delivered.
“However, publication of the document merely underlines how short-sighted it was to reset the rate without resolving these wider issues. MDDUS continues to believe that the Lord Chancellor’s approach, and the Scottish Government’s regrettable decision to fall in line with it, may very well have been based on legally flawed analysis.
“We will continue to consider our options for further action to address the adverse consequences for GPs and all our other members of the February decision as we await firm funding proposals from both Governments and the Lord Chancellor's response to our formal letter setting out the legal arguments."
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Note to editors
MDDUS (The Medical and Dental Defence Union of Scotland) is a medical and dental defence organisation providing access to professional indemnity and expert medico- and dento-legal advice for doctors, dentists and other healthcare professionals throughout the UK.
For further information on MDDUS go to www.mddus.com.
This page was correct at the time of publication. Any guidance is intended as general guidance for members only. If you are a member and need specific advice relating to your own circumstances, please contact one of our advisers.