Report comment

Surprised the article didn't mention one massive point here: Security for PPO's.

The various defence organisations do not meet the criteria of "Secure" under the Damages Act, as they are not formal insurers, and hence the Court can't order PPOs, even by consent.

I don't suppose the Defence organisations considered this an issue whilst, with a discount rate of 2.5%, the accepted wisdom was that it was much cheaper to make lump sum payments rather than a PPO.

With the change in the discount rate, obviously that equation changes radically and now they would be _very_ keen to make as many payments as possible via PPOs.

There may be other factors at play, but I can't help thinking that's a significant one.