Since 1 October 2018, the courts have the power to award
periodic payment orders instead of traditional lump sum payments in
catastrophic injuries cases.
Until now, the courts could only award damages in the form of
lump sum payments, though in recent years they often approved
interim payment schemes in the context of personal injuries
settlements.
It has long been recognised that lump sum payments, by their
nature, may miss the mark of fair compensation and fail to take
into account a claimant's future personal circumstances, future
investment returns and inflation rates. The commencement of the
relevant provisions of the Civil Liability (Amendment) Act 2017
means that claimants who have suffered catastrophic injuries may
now receive damages, including the cost of future care, medical
costs and in certain circumstances future loss of earnings, in the
form of index-linked annual payments known as periodic payment
orders or PPOs.
