Following the change in England and Wales, the Isle of Man Treasury have now announced that they are conducting a review of the discount rate applicable to personal injury compensation awarded by the Isle of Man Courts.
The discount rate applicable in the Isle of Man is currently +2.5%, having been set by the Damages (Personal Injury) Order 2014 (made under section 24(1) of the Law Reform Act 1997) Tynwald. The decision in De Yoxall v Moore[1] confirmed that, notwithstanding the applicable rates of other jurisdictions, this rate would be upheld by the Courts and only departed from in exceptional cases where the specific facts of the case meant that a different rate would be more appropriate, until such time that it was amended by Treasury.
Treasury have confirmed the Isle of Man review is underway and they are considering the detailed findings of documentation published with the Lord Chancellor’s announcement in July, alongside developments in other jurisdictions such as Scotland, Jersey and Guernsey.
The review is anticipated to take a number of months to complete with the aim of legislation to amend the discount rate being brought to Tynwald no later than the January 2020 sitting. In the interim period, the discount rate in the Isle of Man will remain at +2.5%.
A link to the press release announcing the discount rate review can be found here.
[1] De Yoxall v Moore [4 August 2015] ORD 2009/17 (Unreported)
