81Structured settlements

#### 81 Structured settlements 81 Structured settlements > > (1) This section applies to an award of damages if the plaintiff and the defendant’s insurer or, as the case may be, the Nominal Defendant have agreed that it will apply. > > > (2) If this section applies to an award of damages, the court may: > > > > > (a) separately determine the amount of damages for non-economic loss, the amount of damages for future economic loss and the amount of damages for past economic loss, and > > > > > (b) order that any damages determined by the court for future economic loss (other than damages for impairment of earning capacity), including: > > > > > > > (i) reasonable hospital, medical, pharmaceutical and rehabilitation expenses, and > > > > > > > (ii) any compensation payable under section 72, > > > > > > shall be paid in accordance with such arrangements as the court determines or approves, and > > > > > (c) order that any damages determined by the court for impairment of earning capacity shall be paid in accordance with such arrangements as the court determines or approves. > > > (3) In making an order under this section, the court shall have regard to: > > > > > (a) the ability of the plaintiff to manage and invest any lump sum award of damages, > > > > > (b) the need to ensure that expenses incurred by the plaintiff which are required to be met by the defendant: > > > > > > > (i) are not unreasonable having regard to the circumstances of the plaintiff, > > > > > > > (ii) are properly verified, and > > > > > > > (iii) relate to the injury caused by the fault of the defendant, > > > > > (c) the principle that costs and expenses are only recoverable by the plaintiff from the defendant in relation to hospital, medical, pharmaceutical and rehabilitation services, services of a domestic nature and services relating to nursing and attendance if the provision of those services is likely to, or is reasonably likely to, advantage the plaintiff, > > > > > (d) the views of the insurer or the Nominal Defendant in relation to the proposed order, and > > > > > (e) such other matters as the court thinks fit. > > > (4) In making an order under subsection (2) (c) relating to damages for impairment of earning capacity, the court may order that the damages be used to purchase an annuity for the plaintiff on such terms as the court thinks fit. > > > (5) The court shall not make an order under subsection (2) (c) unless the court considers there is good cause for making the order. > > > (6) Arrangements determined or approved under subsection (2) (c) may include provision that payments of damages for impairment of earning capacity shall be made at intervals of not more than 12 months. > > > (7) A party to any arrangements determined or approved under this section may apply to the court at any time for an order varying or terminating the arrangements. An order cannot be made to vary or terminate the arrangements if those arrangements involve, for the purpose of giving effect to all or part of the original order, an investment that cannot readily be varied or terminated by the parties to the investment (for example, an annuity). > > > (8) The court may, on an application under subsection (7), make such order as it thinks fit having regard to the provisions of this section. > > > (9) The regulations may make provision for and with respect to any matter dealt with in this section and, in particular, may impose conditions or limitations on the orders that may be made under this section or otherwise regulate the making of those orders. > > > (10) Any such regulations shall not be made unless recommended by the Authority. > > **s 81:** Subst 1989 No 47, Sch 1 (40). Am 1997 No 3, Sch 1 \[21\].