The cost of claims could rise significantly if courts accept the recommendations in the Ogden Tables, Eversheds law firm said.
The fifth edition of the Ogden Tables criticises the current discount rate, which was set at 2.5% in 2001 by the Lord Chancellor.
The document recommends that there are more accurate ways to calculate the discount rate by taking into account wage information or the care costs.
Eversheds said these considerations “have a tendency to increase at a rate greater than the retail price index which will increase the level of compensation.
“Alternatively it is suggested that the ‘multiplicand'- usually the annual net loss- be adjusted to reflect rises above inflation.
“Either of these will cause the overall cost of claims to rise.”
