NTMA considers replacing lump sums with periodic payments

INJURY CASES: THE NATIONAL Treasury Management Agency (NTMA) is conducting an actuarial review to examine the feasibility and…

INJURY CASES:THE NATIONAL Treasury Management Agency (NTMA) is conducting an actuarial review to examine the feasibility and cost-effectiveness of replacing lump sum awards with periodic payments in catastrophic injury cases, according to the Minister for Justice. This follows a report from an expert group on such payments, chaired by Mr Justice John Quirke, which was presented to former minister for justice Dermot Ahern two years ago.

That report recommended legislation should be enacted to empower the courts to make periodic payment orders as an alternative to lump sums. This would cover future treatment, care and provision of medical and assistive aids and appliances.

Drawing on similar legislation in the UK, the group recommended the court should be able to make such orders where it considered it in the best interests of the injured person. Both the plaintiff and defendant should have the right to be heard and to make submissions before such orders were made. It said the courts should be empowered to make such periodic payment orders to compensate for loss of future earnings only with the consent of the parties. The group also recommended putting in place arrangements to secure such payments.

This would involve the NTMA providing the necessary security to injured victims, paid for by the relevant insurer, or, if the defendant was a public body, by the State. A spokesman for the Minister told The Irish Times yesterday the NTMA review was ongoing.