Wednesday, April 30, 2014

Decrease in Discount Rate Means Increased Compensation for Personal Injury Victims

The Chief Justice of British Columbia has announced a decrease in the discount rate under the Law and Equity Act.  The discount rate is used by economists to calculate the current dollar value of future compensation awards.


By decreasing the discount rate, the Court has recognized that the previous rate unfairly penalized victims of personal injuries, including ICBC claims.  Compensation for these victims will now more accurately reflect the current economic climate and rates of return on investments.  The discount rate had not been changed in 33 years.


It is important that personal injury claims take into account the new discount rate when calculating fair compensation, including for ICBC claims.


If you require advise about your personal injury claim, including ICBC claims, and how the change in discount rate affects your claim, please feel free to contact René Gantzert at Gantzert Law Office.