ILC ARTICLE

Insurers braced for 22% uplift in damages 


Insurers could be facing significant increases in damages for both severe and minor injuries after the 17th edition of the Judicial College Guide for the Assessment of General Damages announced an average uplift of 22%. 

According to its guidelines, and calculations from Keoghs, damages for minor injuries will increase from £690 to £840 if recovery is complete within a week, and from a top figure of £2,450 to £2,990 if recovery takes less than three months.  

For more serious injuries, damages for a 12-month wrist injury increase from £4,740 to £5,790, while hip injuries leading to full recovery are up from £3,950 to £4,820. 

However, these uplifts only account for inflation up to August 2023, with the JCG saying that and further inflation should be taken into account at the time of settlement. 

These figures have been calculated based on the Retail Price Index between the 16th and 17th editions. During the same period the Consumer Price Index was 17%, and the JCG confirmed that prior to publication it had received numerous submissions to consider other indices. 

It said, “It has always been the practice to use the Retail Prices Index. It is the index which will continue to be used unless and until the courts decide otherwise. [We] recognise the existence of alternative indices that may be appropriate. However, it is not for the editorial team to prescribe a different inflationary index from that which is judicially approved and adopted by the courts dealing with personal injury claims. 

“Any change must be for the courts having heard evidence … if the current judicially approved index is to be challenged, that challenge must be made in the courts.” 

Information source: Clyde & Co 

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