The Damages Bill , externalwill also:

Allow the courts to require periodical payments of compensation.The law currently enables people who have been injured to receive compensation via regular periodical payments, rather than as a lump sum. This can remove some of the uncertainties associated with calculating a one-off, lump sum award.

At present, the court can only make a compensation award involving periodical payments where the parties involved in the case agree.

Provisions in the Bill would require the court to consider periodical payments in every case involving future financial loss. The court would be able to impose periodical payment, but only where ongoing payment is considered reasonably secure.

The Bill would also enable a compensation award to be reconsidered by the courts in the event of a specified change to the pursuer's condition.

The Damages (Investment Returns and Periodical Payments) (Scotland) Bill , externalproposes to:

Reform the way the discount rate is calculated. The discount rate is an adjustment made to a lump sum award for future financial loss in personal injury cases. It accounts for the notional rate of return if the money were invested. It is intended to ensure that the injured person neither benefits nor suffers as a result of receiving the money before the losses it compensates for have occurred.

Previous court judgments state that the discount rate should be calculated on the basis that injured people are not required to take investment risks with their compensation. It is currently set by Scottish Ministers, with reference to returns on index-linked gilts - a form of UK Government bond.

The Bill would reform the law to require the discount rate to be set by the UK Government Actuary, using a methodology set out in legislation. This would consider a hypothetical investor with a mixed investment portfolio. The rate would be reviewed regularly.

Liam McArthur welcomes the bill on behalf of the Scottish Lib Dems.

He says it provides clarity and transparency, moving forward, and allows there to be a fair calculation of compensation.

Mr McArthur says large amounts of lump sums could go towards legal representatives, and welcomes periodical payments.

MSP Daniel Johnson says Labour supports this bill, which seeks to protect those who have suffered and provide clarity.

He says most of the balances have been struck, and that amendment 1 will benefit individuals, giving the judge and pursuer a chance to decide on payment methods.

Amendment 9 takes into account investment costs and interest costs, he continues, but says the discount rate of 0.75% is too low and wants it to be kept under review.

He says it's an important step forward in protecting vulnerable people, but recognises it has flaws.

Image source, bbc

Economy, Energy and Fair Work Committee convener Gordon Lindhurst welcomes the engagement of the minster with the committee's stage one report., external

Mr Lindhurst says some of the concerns raised at stage one have been ironed out

He welcomes the change of the review period of the discount rate to five years.

Damages are not a reward, but there to support someone for life after a life changing incident, he says.

Image source, bbc

Community Safety Minister Ash Denham gets the final debate on the Damages (Investment Returns and Periodical Payments) (Scotland) Bill , externalundereway.

Ms Denham says the consensus was that the law on the current discount rate needs to be changed.

She details the measures in the bill, scroll down for details of its contents.

The seven years of consultation on this subject show there are no easy answers, she says.

This bill is about people who have suffered a catastrophic accident or incident and ensures their rights to fair compensation.

Image source, bbc

Ms Denham tells the chamber that she's considered independent advice on charges, and will raise them from 0.5% to 0.75%.

She says the discount rate will still mean that pursuers get a good deal.

Tory MSP Dean Lockhart says the costs will fall on organisations like the NHS, and so the Conservatives cannot support it.

MSPs unanimously agree to all the amendments from the grouping rate of return: drafting amendments.

The Damages Bill , externalwill also:

Allow the courts to require periodical payments of compensation.The law currently enables people who have been injured to receive compensation via regular periodical payments, rather than as a lump sum. This can remove some of the uncertainties associated with calculating a one-off, lump sum award.

At present, the court can only make a compensation award involving periodical payments where the parties involved in the case agree.

Provisions in the Bill would require the court to consider periodical payments in every case involving future financial loss. The court would be able to impose periodical payment, but only where ongoing payment is considered reasonably secure.

The Bill would also enable a compensation award to be reconsidered by the courts in the event of a specified change to the pursuer's condition.

We have the first division, with MSPs failing to agree to the amendment on the rate of return: standard adjustments.

MSPs back amendment 9 with 84 MSPs backing it and 26 abstentions.

The Damages (Investment Returns and Periodical Payments) (Scotland) Bill , externalproposes to:

Reform the way the discount rate is calculated. The discount rate is an adjustment made to a lump sum award for future financial loss in personal injury cases. It accounts for the notional rate of return if the money were invested. It is intended to ensure that the injured person neither benefits nor suffers as a result of receiving the money before the losses it compensates for have occurred.

Previous court judgments state that the discount rate should be calculated on the basis that injured people are not required to take investment risks with their compensation. It is currently set by Scottish Ministers, with reference to returns on index-linked gilts - a form of UK Government bond.

The Bill would reform the law to require the discount rate to be set by the UK Government Actuary, using a methodology set out in legislation. This would consider a hypothetical investor with a mixed investment portfolio. The rate would be reviewed regularly.

Community Safety Minister Ash Denham responds, saying she was concerned by the amendment at stage 2, which is why she asked for it to be removed until now.

She says discussions with Ms Baillie have been 'productive.'

The minister continues, saying amendment 1 strikes the appropriate balance and she is now happy to support it.

Jackie Baillie says all the committee wanted was for the pursuers needs to be met.

The SNP's John Mason says lump sums may be preferred as pursuers may not trust that periodical payments will continue to be made.

He says he's happy to support the amendment.

Labour's Jackie Baillie speaks on Amendment 1 to the Damages Bill, that a pursuer's view is listened to by the judge.

The MSP says the pursuer's preference on how they receive payment should be taken into account.

That could be a lump sum or a periodic payment.

Lib Dem Liam McArthur says family members may put pressure on pursuers to take a lump sum, and legal bills may be higher in that case.

He's calling for safeguards if the decision is not in the interests on the pursuer.

Image source, Getty Images

Now the chamber will hear stage 3 proceedings of the Damages (Investment Returns and Periodical Payments) (Scotland) Bill, external which is designed to reform the laws relating to compensation for personal injury victims.

The new law will set into legislation the method for calculating payments. and could see Scottish courts imposing something called periodical payments, which only happen now if both parties agree.

The Scottish Parliament website outlines the case:

This Scottish government bill was introduced by the then Justice Secretary Michael Matheson, on 14 June 2018. The Bill completed Stage 2 on 22 January 2019.

• Here's the marshalled list of amendments, external
• Here's the groupings of amendments, external