Treasury to review discount rate for personal injury claims

Thu, 05 Sep 2019

Treasury are reviewing a possible change to the way personal injury compensation payments are calculated through the discount rate.

The final figure awarded to victims of life-changing injuries is currently adjusted via the rate to reflect the interest that is expected to be earned by investing the award, as well as the effect expenses may have on returns, such as taxation and inflation.

Discount rates are set through legislation and must be considered by the courts when compensation is awarded. The Treasury has responsibility for setting discount rates in the Isle of Man and any change is subject to the approval of Tynwald.

Treasury Minister Alf Cannan said that the process is likely to take a number of months to complete, but that it remains a priority for the Treasury.