Motor Vehicles: Insurance

(asked on 20th March 2017) - View Source

Question to the Ministry of Justice:

To ask the Secretary of State for Justice, what assessment her Department has made of the potential effect of changes to the discount rate for motor insurance on the average cost of such insurance.


Answered by
Oliver Heald Portrait
Oliver Heald
This question was answered on 23rd March 2017

On 27 February the Lord Chancellor reduced the personal injury discount rate set under section 1 of the Damages Act 1996 to minus 0.75%. The new rate came into effect on 20 March.

The government acknowledges that the change in the rate will have significant implications across the public and private sectors and has committed to review the legal framework for the setting of the rate to ensure it remains fit for purpose in the future. A consultation paper will be published before Easter.

Following the consultation, the government will consider whether there is a better or fairer framework for claimants and defendants, and bring forward any necessary legislation at an early stage.

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