MOTOR VEHICLES (THIRD PARTY INSURANCE) ACT 1942 - SECT 35B Discount rate applicable to certain awards of damages

MOTOR VEHICLES (THIRD PARTY INSURANCE) ACT 1942 - SECT 35B

35B Discount rate applicable to certain awards of damages

(1) Where an award of damages to which this Part applies is to include compensation, assessed as a lump sum, in respect of damage for future loss which is referable to:

(a) deprivation or impairment of earning capacity,

(b) loss of the expectation of financial support, or

(c) a liability to incur expenditure in the future,

the present value of the future loss shall be qualified by adopting:

(d) a discount rate of the prescribed percentage, or

(e) where no percentage is prescribed as referred to in paragraph (d), a discount rate of 5 per cent,

in order to make appropriate allowance for inflation, for future changes in rates of wages generally or of prices, and for tax (either actual or notional) upon income from investment of the sum awarded.

(2) Except as provided by this section, nothing in this section affects any other law relating to the discounting of sums awarded as damages.