LAW REFORM (MISCELLANEOUS PROVISIONS) ACT 1941 - SECT 5

LAW REFORM (MISCELLANEOUS PROVISIONS) ACT 1941 - SECT 5

5 .         Discount rate applicable to damages awarded for future loss

        (1)         Where an award of damages that relates to personal injury or the death of a person is to include compensation, awarded as a lump sum, in respect of damage for future loss that is referable to —

            (a)         loss or impairment of capacity to earn;

            (b)         loss or diminution of future probable earnings; or

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

                the present value of the future loss shall be quantified by adopting —

            (d)         a discount rate of the percentage fixed by the Governor by Order; or

            (e)         where no percentage is fixed as referred to in paragraph (d), a discount rate of 6%.

        (2)         The Governor may, by Order made on the recommendation of the Attorney General, fix a discount rate as referred to in subsection (1)(d).

        (3)         In subsection (1) personal injury includes any disease and any impairment of a person’s physical or mental condition.

        [Section 5 inserted: No. 50 of 1986 s. 5(1).]