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Litigation Letter

Periodical payments

Under current Government plans, compensation for personal injury is to be paid periodically rather than by a lump sum. However, the Association of Personal Injury Lawyers is concerned that the payment, which will be linked to the retail price index, will not keep pace with care costs, such as nursing care. Furthermore, all the evidence shows that RPI linking is inadequate to reflect the likely increases in earnings which the claimant would have had but for the accident. A link to the average earnings index would be far more appropriate.

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