1. Home
  2. /
  3. Transport & logistics
  4. /
  5. Ogden – Costs v...

Ogden – Costs v Affordability …again!

Sep 27, 2023

We have talked about the Ogden rate in the past and its implications for the cost of personal injury claims. These tables are used to calculate the amount of compensation awarded to individuals who have suffered long-term or life-changing injuries. We talk about it because it adds yet another cost pressure to businesses in the form of higher insurance premiums.

Read about the Ogden rate consultation

Read about why the Ogden rate is important

A reminder about what is at the core of Ogden

  1. Calculation of Compensation: The Ogden tables provide a framework for calculating the future financial losses and expenses that an injured person may incur because of their injury. It considers factors such as life expectancy, future care costs, loss of earnings, and other financial losses.
  2. Changes in Compensation Amounts: The introduction of the Ogden tables has led to changes in the amount of compensation awarded to individuals. In some cases, the tables have resulted in higher compensation amounts, particularly for individuals with severe or long-term injuries.

Why is a “dual rate” at the fore now?

In 2019 and still today there was always a debate about whether a “dual rate” should have been applied to compensation to reflect short-term and longer-term investments. Essentially, the argument is that the single rate is penalising claimants with shorter life expectancy. If somebody has a life expectancy of five or 10 years, then they’re not able to invest damages in that period and guarantee a decent return on their investment.

The Ministry of Justice (MOJ) announced a statutory review of consultation that has now expired with the core debate around the suitability of the single rate that has been used to decide full damages including future financial needs. What we really wanted was insurers to speak as a single voice on this critical issue but as always differing views were given.

The matter is now with an appointed panel of experts. They will be considering the responses to the call for evidence and making recommendations on a single versus dual rate as part of their review. The statutory review needs to take place by 15th July 2024 in England and Wales, but the outcome might not be clear until early 2025.

If you are a buyer of Employers Liability, Public Liability or Motor Insurance just keep an eye on developments. We will be.

Get a Quote

You can call us during normal office hours, Monday to Friday, 9am to 5pm. Outside of office hours you can either email us or leave an answerphone message and we promise to get back to you the next working day.

General enquiries:
020 8290 4560

Sign up for news

* indicates required