Peer slates PI plans as firm stirs debate on calculating costs

Insurance law firm Beachcroft Wansbroughs has helped foil a campaign to change the calculation of damages in personal injury cases, after the practice's senior partner slated the plan in a House of Lords debate.The motion to set the discount rate for personal injury multipliers at 2%, subject to future review, was defeated after Lord Hunt of Wirral warned it would lead to uncertainty.The multipliers are used to calculate the level of future losses, and in July were set at 2.5% by the Lord Chancellor, Lord Irvine.

The shadow Lord Chancellor, Lord Kingsland, suggested the rate should take into account index-linked government securities, as was done previously.

But Lord Hunt argued that the rate should stay at its current level as there are no securities with a redemption date of more than 30 years.