Ogden tables
Encyclopedia
Ogden tables are a set of statistical tables and other information for use in court cases in the UK.
Their purpose is to make it easier to calculate future losses in personal injury
and fatal accident cases. The tables take into account life expectancy
and provide a range of discount rate
s from -2.0% to 3.0% in steps of 0.5%. The discount rate is fixed by the Lord Chancellor
and is currently 2.5%.
The most recent edition of the tables (7th Edition) makes changes to the discount rate range (previously 0.0% to 5.0% revised to -2.0% to 3.0%) to allow for a revision of the discount rate by the Lord Chancellor (currently under consideration as at 24 October 2011) and to provide for the implications of the case of Helmot -v- Simon as set out in paragraphs 11 to 14 of the introduction to the 7th Edition
The Civil Evidence Act 1995 permitted their use in the UK and they were finally used by the House of Lords
in Wells v Wells in July 1999.
The full, and official, name of the tables is 'Actuarial Tables with explanatory notes for use in Personal Injury and Fatal Accident Cases' but the unofficial name became common parlance following the Civil Evidence Act 1995, where this shorthand name was used as a subheading - Sir Michael Ogden QC having been the chairman of the Working Party for the first four editions Paragraph 2 of the introduction to the fifth edition
Using the Ogden Tables
There are 28 tables of data in the Ogden Tables. Table 1 (Males) and Table 2 (Females) are for life expectancy and loss for life. Tables 3 to 14 are for loss of earnings up to various retirement ages. Tables 15 to 26 are for loss or pension from various retirement ages. Table 27 is for discounting to a period in the future and Table 28 is for a recurring loss over a period of time.
How to calculate life expectancy
To calculate life expectancy, you need to use Table 1 (for males) or Table 2 (for females) and use the data in the 0% column. So for a 45 years old female, using Table 2 you would look down the first column to find 45 and then across to the 0% column which gives a figure of 43.93. In cases where the age is not a whole number, i.e. female who is 45.75 years, then you use the figure for 45 years (43.93) and the figure for 46 years (42.87) and interpolate between the two (46-45.75) x 43.93 + (45.75-45) x 42.87 to give 43.14 years.
How to calculate multiplier for lifetime loss
If the claimant is to suffer a loss that will last their entire life, you need to use Table 1 (for males) or Table 2 (for females) and use the data in the 2.5% column. So for a 50 year old mail, using Table 1 you would look down to first column to find 50 and then across to the 2.5% column which gives a figure of 22.69.
How to calculate value of a single loss in the future
If the claimant needs to pay for something in the future, then the present value can be worked out using Table 27. Look up the period in the future in the first column and then across to the 2.5% column for the multiplier. For example, a purchase required in 10 years time would need to multiplier by 0.7812.
How to calculate multiplier for loss over a period
If the claimant has a recurring loss over a period of say 15 years, then use Table 28 looking up 15 in the first column and then across to the 2.5% column which gives a multiplier of 12.54. If the loss does not start until some time in the future, then you can combine Table 27 and Table 28 to give an overall multiplier. For example a loss over a period of 15 years that starts in 10 years time would have a Table 27 multiplier of 0.7812 and a Table 28 multiplier of 12.54 giving an overall multiplier of 9.80.
Their purpose is to make it easier to calculate future losses in personal injury
Personal injury
Personal injury is a legal term for an injury to the body, mind or emotions, as opposed to an injury to property. The term is most commonly used to refer to a type of tort lawsuit alleging that the plaintiff's injury has been caused by the negligence of another, but also arises in defamation...
and fatal accident cases. The tables take into account life expectancy
Life expectancy
Life expectancy is the expected number of years of life remaining at a given age. It is denoted by ex, which means the average number of subsequent years of life for someone now aged x, according to a particular mortality experience...
and provide a range of discount rate
Discount rate
The discount rate can mean*an interest rate a central bank charges depository institutions that borrow reserves from it, for example for the use of the Federal Reserve's discount window....
s from -2.0% to 3.0% in steps of 0.5%. The discount rate is fixed by the Lord Chancellor
Lord Chancellor
The Lord High Chancellor of Great Britain, or Lord Chancellor, is a senior and important functionary in the government of the United Kingdom. He is the second highest ranking of the Great Officers of State, ranking only after the Lord High Steward. The Lord Chancellor is appointed by the Sovereign...
and is currently 2.5%.
The most recent edition of the tables (7th Edition) makes changes to the discount rate range (previously 0.0% to 5.0% revised to -2.0% to 3.0%) to allow for a revision of the discount rate by the Lord Chancellor (currently under consideration as at 24 October 2011) and to provide for the implications of the case of Helmot -v- Simon as set out in paragraphs 11 to 14 of the introduction to the 7th Edition
The Civil Evidence Act 1995 permitted their use in the UK and they were finally used by the House of Lords
House of Lords
The House of Lords is the upper house of the Parliament of the United Kingdom. Like the House of Commons, it meets in the Palace of Westminster....
in Wells v Wells in July 1999.
The full, and official, name of the tables is 'Actuarial Tables with explanatory notes for use in Personal Injury and Fatal Accident Cases' but the unofficial name became common parlance following the Civil Evidence Act 1995, where this shorthand name was used as a subheading - Sir Michael Ogden QC having been the chairman of the Working Party for the first four editions Paragraph 2 of the introduction to the fifth edition
Using the Ogden Tables
There are 28 tables of data in the Ogden Tables. Table 1 (Males) and Table 2 (Females) are for life expectancy and loss for life. Tables 3 to 14 are for loss of earnings up to various retirement ages. Tables 15 to 26 are for loss or pension from various retirement ages. Table 27 is for discounting to a period in the future and Table 28 is for a recurring loss over a period of time.
How to calculate life expectancy
To calculate life expectancy, you need to use Table 1 (for males) or Table 2 (for females) and use the data in the 0% column. So for a 45 years old female, using Table 2 you would look down the first column to find 45 and then across to the 0% column which gives a figure of 43.93. In cases where the age is not a whole number, i.e. female who is 45.75 years, then you use the figure for 45 years (43.93) and the figure for 46 years (42.87) and interpolate between the two (46-45.75) x 43.93 + (45.75-45) x 42.87 to give 43.14 years.
How to calculate multiplier for lifetime loss
If the claimant is to suffer a loss that will last their entire life, you need to use Table 1 (for males) or Table 2 (for females) and use the data in the 2.5% column. So for a 50 year old mail, using Table 1 you would look down to first column to find 50 and then across to the 2.5% column which gives a figure of 22.69.
How to calculate value of a single loss in the future
If the claimant needs to pay for something in the future, then the present value can be worked out using Table 27. Look up the period in the future in the first column and then across to the 2.5% column for the multiplier. For example, a purchase required in 10 years time would need to multiplier by 0.7812.
How to calculate multiplier for loss over a period
If the claimant has a recurring loss over a period of say 15 years, then use Table 28 looking up 15 in the first column and then across to the 2.5% column which gives a multiplier of 12.54. If the loss does not start until some time in the future, then you can combine Table 27 and Table 28 to give an overall multiplier. For example a loss over a period of 15 years that starts in 10 years time would have a Table 27 multiplier of 0.7812 and a Table 28 multiplier of 12.54 giving an overall multiplier of 9.80.
External links
- Compensation for injury and death (Ogden tables) - from UK Government Actuary's Department
- Frenkels Ogden 7th Edition Free Calculator - Frenkels Online Calculator released October 2011
- piCalculator - piCalculator website