How To Value A Personal Injury?

The victim of a personal injury has the right to seek compensation for any losses. The law refers to those losses as compensatory damages. The value of the compensatory damages can be found by adding up all of the economic damages, and then adding to same figure an estimated value of the victim’s pain and suffering.

What are the economic damages?

Those include the cost of medical treatment for the victim’s injury. Those also include the wages lost by the victim, while he or she was recovering from the accident-related injury as per the injury lawyer in Edmonton.

In some provinces, loss of enjoyment and loss of consortium get categorized as economic damages. In other states, those same losses are placed under the heading “pain and suffering.”

How do insurance companies place a value on pain and suffering?

Some use the multiplier method. That calls for an assessment of the severity of the reported injury. A claimant that had suffered only a minor injury would get assigned a multiplier of 1.5. A claimant that had suffered a severe injury might be assigned a multiplier of, or, possibly, more.

The multiplier then becomes one factor in a multiplication operation. The sum for all the medical costs represents the other factor. The result for that operation gets added to the value attached to the loss of wages. Other insurance companies use the per diem method. In that case, one monetary figure is used for each day of the claimant’s recovery. That figure is then multiplied by the number of days that the claimant spent in recovery.

More recently, some insurers have chosen to use a software program, one that can be added to the company’s computer. That program takes into consideration the type of doctor that treated the injured victim/claimant.

Are there any other factors that might determine the value of a personal injury?

Yes, there is the chance that the insurance company might allege the existence of shared fault. If the claimant/plaintiff were found partly responsible for causing the injury, or for contributing to the accident’s occurrence, then that fact would diminish the injury’s value.

The degree of the contribution made by each party, the defendant and the claimant/plaintiff would determine the amount of money owed by each of them. A rather simplified version of what might actually happen makes the potential result easier to understand.

If the collected evidence had indicated that the defendant created 80% of the factors that caused the accident, and the other party had contributed only 20%, then that information would determine the distribution of the available compensation. The defendant would receive only 20% of the available money, and the claimant/plaintiff would get the remaining 80% of the same pool of funds.