The Impact of Social Security Law on the Recovery in Tort of Damages for Personal Injury

Abstract

This report deals with the extent that damages in tort for personal injury are affected by receipt of social security benefits in the UK. To what extent does provision of collateral benefit' by the welfare state diminish entitlement to damages at common law? Since 1989 the UK has had a comprehensive system for making deduction of relevant benefits from each case where damages were awarded. This affects not simply the 1% of cases which are determined by a judge in court, but also all those settled by agreement outside of court. Insurers and personal injury lawyers must therefore be aware of this system: claims must be centrally registered, deductions must be calculated and the public purse reimbursed. All practitioners must be aware of of these rules for they affect each and every claim that they make. The rules are also of considerable importance academically in weighing the effect of one compensation upon another. The scope of public welfare upon private law provision raises many issues concerning the role of the state and the future of personal injury litigation.