PERIODIC PAYMENTS GRANTED DEMAND FOR PERIODIC PAYMENTS Victims awarded lump sum only compensation face a lifetime of risk. If they live longer than expected or if inflation is higher than anticipated, they risk running out of the financial support they rely on. Seriously injured victims are now also forced to invest their lump sum in risky assets. This is due to changes, introduced by the government in 2019, which altered the way compensation is calculated. This exposes seriously injured people to even further risk. Periodic payments (PPOs), which issue compensation in instalments over someone’s whole lifetime and are linked to inflation, provide some protection against these uncertainties. However, seriously injured victims are struggling to access this key form of compensation. FINANCIAL SECURITY OUT OF REACH IF THEY WERE SERIOUSLY INJURED DUE TO NEGLIGENCE, OVER HALF OF UK ADULTS WOULD WANT TO RECEIVE SOME OF THEIR COMPENSATION AS A PERIODIC PAYMENT. DESPITE THIS, LESS THAN 10% OF SERIOUSLY INJURED CLAIMANTS OBTAIN A PERIODIC PAYMENT FROM A CAR INSURER Those with the most serious injuries are struggling to access a key form of compensation which provides greater financial security PAGE 16
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