Warm reception for plans to pay periodic damages in PI claims

Personal injury claimants might be paid damages periodically - rather than receiving a lump sum - if government proposals are well received.

A consultation paper, published last week by the Lord Chancellor's Department, aims to gauge support for a new regime in which the courts can impose orders for periodical payments for damages.

Martin Staples, a former president of the Forum for Insurance lawyers and senior partner of Vizards Wyeth, said: 'This has always made sense.

It has not been popular with claimants who want a lump sum, and some insurers are wary of a monitoring role, but insurers have been changing their mind on this recently.'

David Marshall, partner with London firm Anthony Gold and treasurer of the Association of Personal Injury Lawyers, said: 'Although we are quite pleased about the proposed method of structuring payments, we are not happy about the courts imposing a model on the claimant and taking away freedom of choice, and we are cautious about the proposed reviewability of awards clogging up the courts.'

Links: www.lcd.gov.uk

Jeremy Fleming