GoSkippy.com has responded to the Lord Chancellor’s announcement today of a change in the discount rate used by courts in England and Wales to calculate awards for personal injury damages, from 2.5% to -0.75%:
“Admiral and Direct Line have already announced that the lowering of the Ogden discount rate, as it is known, will hit bottom line profits considerably. Admiral stands to see a £100m decline in profits, Direct Line will suffer worse with losses of £215m.
“It is no wonder that the Association of British Insurers has described the rate change as ‘crazy’. The added costs will inevitably be passed onto consumers as insurers are forced to increase their premiums.
“Not only that, but the situation will become extremely imbalanced with a few thousand claimants receiving £100s of millions and all other motorists having to deal with yet another inflated annual bill.”
Arron Banks, owner of GoSkippy.com commented:
“This is a disgraceful move by the Lord Chancellor, Liz Truss. As a consequence of living in the Westminster bubble, she and her colleagues have no idea of the impact this rate change will have on all motorists, who can expect to see the cost of insurance rise by over 10%. Even more nuts is the extra £1 billion-a-year the NHS will have to pay out.
“Clearly, this move has not been thought through. It serves as yet another example of the incompetence plaguing our misguided and isolated political Establishment. It is utter madness for a governing administration to aim to reduce costs for motorists through personal injury reform whilst also increasing costs by changing the Ogden discount rate.”