New law to reform payouts

A NEW law to reform compensation for personal injury victims will achieve “fairness and transparency” in payments, a Holyrood committee has found.

In these cases, a person claims compensation after being injured through the wrongful behaviour of another person or organisation.

The Damages (Investment Returns and Periodical Payments) (Scotland) Bill proposes the methodology for calculating the discount rate for payments be set out in legislation.

The Bill would also allow Scottish courts to impose periodical compensation payments, rather than this being given as a lump sum.

Currently, periodical compensation payments can only happen when the parties involved in the case agree.

In its report, the committee agrees with the principles of the proposed legislation.

Committee convener Gordon Lindhurst said: “We heard compelling evidence for payments which allow those that have suffered a personal injury to receive lifelong compensation instalments.

“We ask the Scottish Government how it will promote the use of these periodical payment orders.”

A Scottish Government spokeswoman said: “The focus of the Damages Bill will be to amend the law on the personal injury discount rate – making it fairer, clearer and more credible – and also enabling courts to impose periodical payments orders as an alternative to single one-off payments for personal injury awards where this is considered more appropriate.”