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In most cases, compensation for personal injuries (personskade) is paid on a one-off basis. The capitalization rate is used in the calculations. Today it is the courts that decide this. However, the government would prefer the capitalization rate to be determined by regulation and by professional economic judgment.
The higher the capitalization rate, the lower the compensation
The Supreme Court determined capitalization rate at 4 percent, which many consider too high and leads to lower payments. The higher the capitalization rate, the lower the compensation.
-Compensation (erstatning) is the possibility of a dignified life. The injured party is entitled to full compensation. I want the interest rate to be based on accurate economic assessments and to be anchored in the regulation, says Justice and Crisis Management Minister Monica Mæland.
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Greater predictability and avoid disputes
The regulated interest rate will be based on the principles of tort law and professional economic assessments. This will simplify settlements for damages, give the parties more predictability and prevent disputes. The application allows the court to apply a different interest rate in specific cases if special circumstances so require.
In the interests of victims of the guardian
If the victim is in care (vergemål) and the compensation is to be paid into a bank account. This will mean a lower return on the compensation amount. Therefore, the ministry proposes that a separate capitalization rate could be specified in the regulations that can be applied in such cases.
A separate interest rate for a group that cannot manage its money
- Inhabitants of care are a vulnerable group that needs to be cared for in a good and correct way. Therefore, we allow a separate interest rate to be set for this group that cannot manage their money in the same way as others. This is the Minister of Justice and Crisis Management Monica Mæland.
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