The Civil Liability Bill becomes an act

The Bill received Royal Assent on 20 December 2018. This confirms the framework for the whiplash reforms, changes the process for a regular review of the personal injury discount rate, and started the clock ticking on the first review of the rate. So what now?

Discount Rate

The Act prescribed changes to the process of the setting of the discount rate, both for the first review and for subsequent reviews (these will involve an expert panel and will take place at least once every five years).

Initial review of the rate

The time periods in relation to the first review are:

• 90 days to commence the review
• 140 days to complete
• The Lord Chancellor must consult the Government Actuary and the Treasury
• The Government Actuary must be consulted within 20 days of the start of the 140 day period
• Must respond 80 days after the consultation request.

Timings of the first review

• The review commenced on 19 March 2019
• The Government Actuary Department was consulted on 7 April 2019
• The Government Actuary Department will respond by 26 June 2019
• The Review will be complete and the new rate set by 5 August 2019

This process will run alongside the current Call for Evidence on the discount rate issued by the MoJ.

Extending fixed recoverable costs

On 28 March 2019, the MoJ released a consultation on the extension of Fixed Recoverable Costs in Civil Cases.

The consultation seeks views on a number of recommendations made by Sir Rupert Jackson in his Supplemental report of 31 July 2017. The Government are taking forward a number of those recommendations and are consulting on:

• Extending fixed recoverable costs to all other cases valued up to £25,000 in damages
• A new process and fixed recoverable costs in noise induced hearing loss claims
• Expanding fixed recoverable costs to include the simple intermediate cases valued between £25,000 - £100,000

The consultation will remain open until 6 June 2019. The MoJ have indicated that they would like to know what corporates think about the proposed changes, even if it is only to say they support them! Keoghs has prepared a response to the consultation and we are happy to discuss this further with you if you are interested. 

For further information, contact Hayley Riach