Discount Rate and a Donald Trump moment
I have to confess to having a Donald Trump moment last night. And you won’t hear that very often!
I was so incensed on reading an article in the Guardian that I headed straight to Twitter.
Before I go on, here is the link to the offending piece –
This was all about the discount rate which came into effect yesterday. This is to do with the process for calculating how much compensation a severely injured victim will require to ensure that their care needs are met – often for life.
I wrote about this a few weeks ago and explained why it was so important to disabled people –
For many years, victims faced a real risk that their compensation would run out. This was because of the assumed return of 2.5% on investment of damages at a time when interest rates have been historically low. This situation could not continue and was rectified when the MOJ announced that the rate would be -0.75%.
The first problem with the misleading Guardian article is that it fails to explain any of this. They briefly quote the victim’s lawyers but then spend far more time bemoaning the impact on public finances. They do not mention at all, that the burden of care will fall back on the state if the damages run out.
The article then goes on to complain about the cost of motor insurance! So a person’s care package can run out years ahead of time, so long as drivers can get a small reduction in their insurance costs – a reduction that no one realistically expects to happen.
But what is most offensive is the lack of any information at all about the poor victim. We are told that she is a 10 year old with cerebral palsy. That is it. We know nothing about the extent of her disability, about what level of care she needs, about what her life expectancy is, about her level of intelligence – none of these merits a mention. But we get 7 paragraphs about the impact on car insurance.
The victim herself is irrelevant. She is not treated as a real person. She is just a statistic used for the venting of journalistic outrage.
Proper compensation can change a person’s life. I shared this true story two years ago –
This is the problem with justice. It is ultimately about real people.
These changes are designed to protect the most vulnerable in our society.
It is alarming that the mainstream media fail to or refuse to understand any of this.