Overview

The Negligence and Damages Bill aims to reform the law in England and Wales concerning negligence claims related to psychiatric injury and damages awarded for personal injuries and death. It clarifies the rules around who can claim for psychiatric harm, modifies how damages are calculated for personal injuries (especially when life expectancy is reduced), and introduces a new framework for bereavement damages.

Description

Part 1: Psychiatric Injury

This part clarifies the legal requirements for claiming damages for psychiatric illness caused by witnessing injury to another. It establishes a "close tie of love and affection" requirement between the claimant and the injured person. Specific relationships (spouse, child, sibling, etc.) automatically meet this requirement; others must prove it. The Bill abolishes certain common law duties of care related to psychiatric injury and removes restrictions regarding the "shock" requirement and proximity to the event.

Part 2: Damages for Personal Injuries

This part deals with calculating damages for personal injuries resulting in reduced life expectancy. It allows for compensation for pain, suffering, and loss of amenity due to the awareness of reduced lifespan but prevents separate compensation for the lost years themselves. Calculations for future pecuniary loss are based on a "notional date of death" assuming the injury hadn't occurred, with adjustments for expected earnings and benefits, minus an estimated 25% for living expenses.

Part 3: Bereavement Damages

This part introduces a new system for bereavement damages payable to relatives of someone who dies due to another's negligence. It specifies who qualifies as a relative (immediate family members receive higher awards), outlines what losses are compensable (loss of dependency, funeral expenses, distress, grief), and how compensation is assessed. A total of 75% of the deceased's net income is available to support relatives, with specific provisions for dependent children and other relatives.

Part 4: Final Provisions

This part repeals sections of the Fatal Accidents Act 1976 and the Law Reform (Miscellaneous Provisions) Act 1934 and sets the commencement date (the day after Royal Assent). The Act applies to events occurring on or after a date to be appointed by the Lord Chancellor or Secretary of State. The Bill only applies to England and Wales.

Government Spending

The bill is expected to increase government spending due to the potential for higher payouts in negligence claims, particularly in relation to bereavement damages. Specific figures are not readily available from this text.

Groups Affected

Groups potentially affected include:

• Claimants suffering psychiatric injury: The changes to the legal thresholds for claims will affect their ability to successfully sue.
• Relatives of those injured or killed through negligence: They will be affected by changes to bereavement damages, potentially receiving higher awards.
• Insurers: They will face increased payouts, potentially leading to higher insurance premiums.
• Businesses and individuals: The changes may alter their liability exposure in negligence cases.

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