The Damages (Investment Returns and Periodical Payments
(Scotland) Bill has passed its Stage 1 reading in the Scottish
Parliament.
The debate followed hot on the heels of the Government's
reply to the Economy, Energy and Fair Work Committee (the
Committee)'s Report on the Bill, which provided some welcome
news for insurers. However, there remain several significant points
of contention in the Bill, which it is hoped will be addressed
during the parliamentary process.
Review period
Scottish Ministers accepted recommendations from both the ABI
and the Committee that the Discount Rate should be reviewed every
five years, rather than three as proposed in the Bill. As large
loss cases typically take up to five years to resolve, a longer
review period should help to avoid parties trying to 'game'
the system by delaying their claims in the hope of receiving a more
favourable discount rate at review. Ministers are expected to bring
forward an amendment at Stage 2.
