When a compensation award is made to the victim of an accident, the actual amount of the settlement is adjusted to take into account the interest the claimant can expect to earn by investing it. This is achieved by applying a ‘discount rate’, or ‘Ogden rate’ to the sum awarded. Traditionally, the percentage rate applied has been linked to returns on lowest-risk investments – typically index-linked gilts. The lower the rate, the higher the compensation award.
Aldi Stores Ltd have been fined £1 million and ordered to pay £70,000 in cost after a delivery driver who had only worked for the firm for two weeks suffered severe injuries to his foot while operating an electric pallet truck at one of its stores.