A High Court ruling that will force insurers to pay out £150,000 a year to a child for the rest of her life could alter structured settlements and the future of damages.
The move is welcomed following the recent debate led by Lord Hunt who said structured settlements are the right way forward because they combine certainty with a guarantee of support for as long as is necessary.
Justice Leverson approved the deal yesterday, which will see Humaira Siddiqua paid £2m and annual payments of £150,000 for the rest of her life - a package worth £6m in total. The insurer is Norwich Union.
Under proposals in the Court Bill to introduce reviewable payment structure, insurers will be left with uncertainty because they are unable to close their books or assess future risks.
Humaira, who was knocked down by a car speeding down a one-way street in East Hackney three years ago, now breathes through a ventilator because of the spinal injuries she sustained. She will need specialist care for the rest of her life.
Driver Simon Ingram denied the charges.