The Civil Liability Act received Royal Assent at 10.44am today. This confirms the framework for the whiplash reforms, changes the process for a regular review of the personal injury discount rate, and starts the clock ticking on the first review of the rate. So what now?
There is a lot that needs to be done to implement these reforms before April 2020 (the Government’s target implementation date).
In summary, these are:
Work is ongoing on these matters; the Government and the MIB (who are heavily involved in the LiP Portal) are confident that these reforms will be up and running by April 2020.
The Act prescribes changes to the process of the setting of the discount rate, both for the first review (as set out below) and for subsequent reviews (these will involve an expert panel and will take place at least once every five years).
We have set out the process for the more immediate issue of the first review below:
The time periods in relation to the first review are:
Remember – these are maximum timescales (the Government has its own incentive to expedite this because of the cost to the public purse.
This process will run alongside the current Call for Evidence on the discount rate issued by the Ministry of Justice.
Keoghs will be responding to the Call for Evidence and will make sure to provide clients with a copy of the draft submission in advance of the 30 January deadline.
The Keoghs Market Affairs Team will continue to stay close to the implementation of this legislation and will engage at all levels and with like-minded stakeholders to ensure that the insurance voice is heard by Government throughout this process.
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