MOTOR ACCIDENTS ACT 1988 - SECT 81
Structured settlements
MOTOR ACCIDENTS ACT 1988 - SECT 81
Structured settlements
81 Structured settlements
(1) This section applies to an award of damages if the plaintiff and the
defendant's insurer or, as the case may be, the Nominal Defendant have agreed
that it will apply.
(2) If this section applies to an award of damages, the
court may:
(a) separately determine the amount of damages for non-economic
loss, the amount of damages for future economic loss and the amount of damages
for past economic loss, and
(b) order that any damages determined by the
court for future economic loss (other than damages for impairment of earning
capacity), including:
(i) reasonable hospital, medical, pharmaceutical and
rehabilitation expenses, and
shall be paid in accordance with such arrangements as the court determines or
approves, and
(c) order that any damages determined by the court for
impairment of earning capacity shall be paid in accordance with such
arrangements as the court determines or approves.
(3) In making an order
under this section, the court shall have regard to:
(a) the ability of the
plaintiff to manage and invest any lump sum award of damages,
(b) the need to
ensure that expenses incurred by the plaintiff which are required to be met by
the defendant:
(i) are not unreasonable having regard to the circumstances of
the plaintiff,
(ii) are properly verified, and
(iii) relate to the injury
caused by the fault of the defendant,
(c) the principle that costs and
expenses are only recoverable by the plaintiff from the defendant in relation
to hospital, medical, pharmaceutical and rehabilitation services, services of
a domestic nature and services relating to nursing and attendance if the
provision of those services is likely to, or is reasonably likely to,
advantage the plaintiff,
(4) In making an order under subsection (2)
(c) relating to damages for impairment of earning capacity, the court may
order that the damages be used to purchase an annuity for the plaintiff on
such terms as the court thinks fit.
(5) The court shall not make an order
under subsection (2) (c) unless the court considers there is good cause for
making the order.
(6) Arrangements determined or approved under subsection
(2) (c) may include provision that payments of damages for impairment of
earning capacity shall be made at intervals of not more than 12 months.
(7) A
party to any arrangements determined or approved under this section may apply
to the court at any time for an order varying or terminating the arrangements.
An order cannot be made to vary or terminate the arrangements if those
arrangements involve, for the purpose of giving effect to all or part of the
original order, an investment that cannot readily be varied or terminated by
the parties to the investment (for example, an annuity).
(8) The court may,
on an application under subsection (7), make such order as it thinks fit
having regard to the provisions of this section.
(9) The regulations may make
provision for and with respect to any matter dealt with in this section and,
in particular, may impose conditions or limitations on the orders that may be
made under this section or otherwise regulate the making of those orders.
(10) Any such regulations shall not be made unless recommended by the
Authority.
