Personal Injury Brief: market insights – October 2024

A summary of key developments including highlights from two amputee rehabilitation industry events; personal injury discount rate announcements in Ireland, Scotland and Northern Ireland; an update on the Damages Claims Portal; the Mental Health Bill under the new Labour Government; and property fraud on the rise.

Highlights from two amputee rehabilitation industry events

Looking back over two UK amputee rehabilitation events over the last few months, we have identified some recurring themes that provide an interesting insight into trends for those specialising in amputation claims:

1. Collaboration in early rehabilitation between parties can greatly assist the rehabilitation for an amputee. It is evident that it is now widely recognised that getting the acute phase of amputee rehabilitation right can help maximise rehabilitation gains and improve function which can lead to a better quality of life for the amputee.
2. In September the new Genium X4 microprocessor knee was released in the UK. The Genium X4 offers many features designed with the aim of ‘redefining amputee mobility’. It is replacing the Genium X3 and the Genium which are being phased out and it is currently the most expensive knee prosthetic on the market.
3. In claims involving severe lower limb orthopaedic injuries where there is significant ongoing pain levels, infection or bones failing to unite, we are increasingly seeing clinicians considering whether elective amputation should be explored.
4. A new surgical technique known as the ‘starfish’ procedure is designed to improve mobility and comfort for partial hand amputees. Key benefits of the procedure include reduction of sores and infections, skin breakdown and irritation resulting in improved structure of the residual limb.

Contact: Stephen Foster

Related item: Key trends in the amputee rehabilitation market

New +0.5% discount rate in Northern Ireland and Scotland now in force

On 26 September 2024 the Government Actuary’s reports covering Scotland and Northern Ireland confirmed that the personal injury discount rate (PIDR) of +0.5% will apply to both jurisdictions. Both rates came into effect on 27 September 2024.

The previous rate of -1.5% in Northern Ireland was set in March 2022. The previous rate in Scotland was -0.75% and this was set in September 2019.

The Northern Ireland Department of Justice state that the “main reason for this [+0.5% rate] is an increase in projected returns on the notional portfolio of investments.”

In terms of next steps, the next planned review of the PIDR for both jurisdictions will commence in July 2029.

Contacts: Amanda Wylie and Rory Jackson

Related item: New +0.5% personal injury discount rates announced in Northern Ireland and Scotland

No change to the discount rate in Ireland

The Minister for Justice has accepted the recommendations of an expert group that there be no change to the personal injury discount rate in catastrophic injuries cases in Ireland. The discount rate will continue at 1% for future care costs and 1.5% for future financial loss.

The Minister has indicated that work is underway on drafting regulations to officially set the discount rate at these levels.

The Minister’s announcement, and the anticipated introduction of the relevant regulations, brings long-awaited and welcome certainty to plaintiffs and defendants involved in catastrophic injury litigation.

Contact: Joanne O'Sullivan

Related item: Catastrophic injury cases: discount rates in Ireland to remain at 1% and 1.5%

Damages Claims Portal update

As part of the Ministry of Justice’s (MoJ) plan to extend the Damages Claims Portal (DCP) to provide an end-to-end digital service for court users, from July the MoJ rolled out additional ‘case progression’ functions to all remaining county courts that had not been part of the 16 early adopter testing programme, namely:

1. Evidence upload.
2. Fee payment and sanctions for non-payment.
3. General applications.
4. Trial readiness confirmation.
5. Digital case file view.
6. Automatic generation of trial bundles by HMCTS.
7. Orders and hearing notices.

The DCP is a pioneering step towards a more efficient, accessible, and user-friendly civil justice system. Continuous improvements and expansions of the platform are anticipated, potentially incorporating more sophisticated technologies such as artificial intelligence to further streamline the process and enhance user experience. The success of this portal may also inspire similar innovations in other areas of law and in jurisdictions around the world.

Contacts: Claire Mulligan and Ian Davies

Related item: The UK Damages Claims Portal: revolutionising civil justice

Mental Health Bill under the new Labour Government

Announced in the King’s Speech on 17 July 2024, the Bill aims to “modernise the Mental Health Act 1983”. The Bill advances the majority of the recommendations for reform made in December 2018, following the independent review of the Act led by Professor Sir Simon Wessely.

Following that review, the previous Government had published a draft Mental Health Bill in June 2022, which had undergone pre-legislative scrutiny. However, a final version of the Bill had not been introduced for parliamentary review prior to the General Election.

Publication of the draft Bill is awaited and is likely to be published following summer recess. The Government has stated that the reforms “will take a number of years to implement” due to the need for recruitment and training of both clinical and judicial staff. Implementation of the reforms is to be phased.

Contact: Rob Tobin

Related item: Mental Health Bill: briefing note

Property fraud on the rise

Property fraud is on the rise: the City of London Police’s Insurance Fraud Enforcement Department reported last year property claims represented the second-highest incidence of opportunistic fraud, accounting for 29% of fraudulent claims reported in the UK.

While this includes household claims, the commercial property sector is also significantly at risk from the increased rate of commission. This is particularly so in sectors affected by economic pressure.

Insurers face a number of obstacles when fighting property fraud, such as the absence of an industry-wide database and the use of ‘phoenix’ companies by directors to evade detection from previous claims involvement. The investigation of claims is still heavily reliant on the experience and datasets of loss adjusters.

A robust fraud detection process is key to mitigating risks. This includes early identification, early collaboration with forensic investigators, loss adjusters and solicitors to direct investigation, secure evidence and ensure false positives are reduced.

Contacts: Katherine Totty and Louise Houliston

Related item: Insurers must turn detective to combat rise in property fraud

 

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