BLB Solicitors represented the Claimant in one of the first personal injury claims to be settled by way of periodical payments.
On 1st April 2005 Courts were given the power to order payment of damages for future loss in personal injury claims in the form of periodical payments, rather than by a one-off lump sum. Periodical payments, if ordered or agreed, will be paid, index-linked and tax free for life. Due to various legal challenges, the uptake on periodical payments was initially very slow, but they are now becoming more popular.
Most Claimant’s will continue to want to settle their claims by way of a lump sum payment, and in the vast majority of cases that is the most appropriate way to proceed. However, in a small number of cases, particularly where a considerable amount of future care and treatment are required, and where life expectancy may be uncertain, it is the best way to secure the Claimant’s future financially.
The aims of the Department of Constitutional Affairs behind the changes include:
Removal of investment risk from claimants;
Removal of uncertainty and disputes over life expectancy;
Greater security for claimants;
Removal of the need for investment advice.
The Claimant represented by BLB Solicitors sustained catastrophic head injuries in a road traffic accident. They will require daily care and therapy for the rest of their life and it was agreed that periodical payments were the best route for a secure future.