A review is being undertaken by the Treasury into a possible change to the way personal injury compensation payments are calculated.

The final figure awarded to victims of life-changing injuries is adjusted via a discount rate to reflect the interest expected to be earned and the effect of taxation and inflation on returns.

Discount rates are set through legislation and must be considered by the courts when compensation is awarded.

A major review of how discount rates are set in England and Wales was recently carried out by the UK government.

This concluded previous discount rates were inequitable.

Following this review, a revised discount rate has now been introduced in England and Wales by the Lord Chancellor.

Treasury Minister Alfred Cannan said: ’It is vital that victims of life-changing injuries receive the appropriate compensation .

’I remain committed to ensuring that the Isle of Man has a fair and balanced approach to setting discount rates.’

He pledged to bring amending legislation forward to Tynwald no later than the sitting in January next year.