Those acting for injured claimants over the last decade will have noticed significant “creep” in our Civil Liability Act’s threshold and deductible in relation to personal injury claims.
It occurs to me that absent any suggestion at the time this legislation (including provision for indexation increases) was introduced, of any intent for an escalating scheme of deductions, it must be assumed that the specified indexation was expected to be in line with an expected increase in the amount of compensation to be awarded for any given injury for pain, suffering, disability and lost enjoyment of life (non-pecuniary loss (NPL)).
When the legislation was first introduced in November 2002, Amount A was $12,000.00. From 1 July 2019, it is $22,000.00. This is an increase of 83%. It follows, in my view that if a sum of $30,000.00 was considered appropriate for a given injury in 2002, the appropriate allowance for such head of damage today is $55,000.00.
We often refer to previous decisions as a guide to an appropriate allowance for NPL. When doing so, this adjustment should be made.
Food for thought and submission…