It addresses the concerns raised repeatedly by the courts that the absence of such legislation has meant that the best option for a catastrophically injured person in the form of a periodic payments order has not been available.
It will ensure that people who have been catastrophically injured will receive the care and assistance they require for the rest of their lives, the Minister said.
He thanked the High Court Working Group on Medical Negligence and Periodic Payments, which addressed the deficiencies in the lump sum system by giving the courts discretion to impose, with or without the consent of parties, periodic payment orders in catastrophic injury cases.
The Working Group recommended that periodic payment orders should be calculated to meet the cost of permanent and long-term care and treatment and should be index-linked.
Periodic payment orders will not be subject to income tax payments will not be taken into account in the event of bankruptcy.