Commentary on Sections The structure of the Act
6.The Act is in three Parts and comprises ten sections and a schedule. Part 1 of the Act relates to the assumed rate of return on investment of damages. Section 1 requires a court, when determining the return to be expected on the investment, to take account of the assumed rate. Section 2 and the schedule detail the process which is required to be followed in reviewing the rate of return; and the frequency of review.
7.Part 2 of the Act relates to periodical payments. Section 3 enables courts to impose an order under which damages for future pecuniary loss take the form of periodic payments without the consent of the parties; and makes provision relating to securing the continuity of periodical payments and for the index linking of periodical payments. Section 4 enables periodical payments for future pecuniary loss (whether awarded by a court or agreed by parties) to be varied or suspended through application to the court. Section 5 makes provision to restrict the circumstances in which the court may make awards of expenses in proceedings on such applications. Section 6 amends the 1996 Act to set out the requirement for judicial approval of the assignation of the right to receive some periodical payments. Section 7 puts in place protections for the element of a periodical payment order which relates to future pecuniary loss in the event of the recipient becoming insolvent.
8.Part 3 of the Act makes ancillary and final provisions. Section 8 deals with ancillary provisions. Section 9 deals with commencement and section 10 sets out the short title of the Act.