A few days ago it was revealed that the Court of Appeal has decided to increase general damages, however the news were not welcomed by the Association of British Insurers, which has appealed against it.
In July, it has been decided that a 10% uplift should be applied to all personal injury awards. The new changes, voted by three senior judges will be applied from April 2013, however cases launched before this date will also take advantage on the 10% uplift.
According to the insurers this decision offers a double cost advantage for claimants, so the ABI is taking a legal actions, by submitting papers to the High Court to request a review of the changes.
A spokesman for the ABI said: ‘At the moment this upsets the balance that was intended by the Legal Aid, Sentencing and Punishment of Offenders Act. We have always known about the 10% uplift, but it was supposed to be balanced by a reduction in legal costs.’
Lord chief justice, master of the rolls and the vice-president of the Court of Appeal were the ones to make the decision to increase general damage.
In their judgment, they said it would be a ‘breach of faith’ for the judiciary not to ensure that trial judges would apply it.
The uplift will apply to general damages for pain, defamation and all other torts which cause suffering, inconvenience or distress to individuals.