The massive compensation package awarded for a bungled NHS birth will force lawyers and insurers to reconsider the value they put on such claims.

Catastrophic injury specialist Malcolm Henke of Greenwoods Solicitors said insurers expected an average settlement of £6m in the most serious injury claims.

However, last week Kerstin Parkin was awarded a £7m cash settlement plus an annual payment of £250,000 for the rest of her life.

She suffered brain damage during the birth of her first child.

She was given a possible life expectancy of a further 50 years, with legal experts putting her total payout at between £12m and £20m.

Henke said medical breakthroughs meant injured claimants were achieving longer life spans than ever before, requiring higher compensation than was previously necessary.

"We had seen some for £7m or £8m, but as far as

I'm aware, this is the largest payout," he said.

"We'll have to reconsider what level of payments are possible, as more of these are likely to filter through."