Ogden tables updated to reflect change in mortality predictions
On Monday 10th October 2011, the new edition of the Ogden Tables was published by the Government Actuary Department. This is the first new edition since March 2007. The tables are used in personal injury and fatal accident cases to provide an aid for those assessing damages appropriate as compensation for a continuing future pecuniary loss or a consequential expense such as care costs. PI specialist Peter Hodson of GCN provides an overview of the changes in this latest edition.
The new (7th) edition can be can be downloaded here
The new tables are based on revised updated mortality rates (using 2008 figures). The result is an increase in life expectancies for males and females. The effect is an increase in multipliers. Life multipliers and pensions multipliers have increased more than earnings multipliers.
In addition, the range of discounts has been changed to include negative discounts (which allows for calculations in accordance with the Guernsey case Helmot v Simon). This feature is likely to be of limited immediate use given there has been no change in the discount rate set by the Lord Chancellor, although he has indicated his intention to review the discount rate and (at the time of writing) is in the process of doing so.
There is a change to the definition of âdisabledâ.
The Ogden Working Party is working on the 8th Edition of the tables and hope to publish these in the autumn of 2012. That edition will be based on yet further updates of mortality rates (likely to be published in late 2011). The Ogden Working Party hope the 8th edition will include a substantial rewrite of the Explanatory Notes but have postponed a decision as to whether the Explanatory Notes need amendment âespecially as regards the circumstances in which it might be appropriate to depart from the suggested non-mortality reduction factors and the size of any adjustments madeâ.
Peter Hodson specialises in occupational diseases and injury claims within his wider practice of personal injury work.