Ogden rate change delay 'disappointing'

The Odgen rate change delay is ‘disappointing’, a top law firm said today.

The Justice Committee today said more evidence is needed on how claimants invest their lump sums before deciding how the rate is calculated.

Insurers had been hopeful that the government would make a change in the New Year, but this report has extinguished those hopes.

Ogden - a measurement used to calculate how much insurers should either be relieved or give more in lump sum payments for serious injuries - was changed in favour of claimants last year, costing the insurers billions. 

Law firm Clyde and Co partner Peter Walmsley said: “As a sat nav might say, there are delays on the journey but we’re still on the quickest route. While this postponement is disappointing, the good news is that the government remains committed to review the Ogden rate. Insurers will do their utmost to deal with the situation in a pragmatic manner.

”Clearly it will hamper their ability to plan ahead but they will continue to argue for a more realistic rate.

 “It can also be argued that the delay isn’t necessary because robust evidence of claimant behaviour already exists.”