A personal injury can lead to physical discomfort, distress, and unwelcome expenses. If your injury has been caused by someone else’s negligence, you may be able to claim compensation.
But how is that amount determined?
Personal injury compensation is not a blanket amount—a set, one-size-fits-all figure—it is subject to a variety of factors and is calculated in a range of ways.
Thus, understanding how payment is being calculated is important so that you can better understand your expectations and make sure your losses are fairly rewarded.
Below are some of the common methods used to calculate compensation for a personal injury claim.
The Multiplier Method
One of the most widely used methods in awarding personal injury compensation is the multiplier system. The system is typically used to award general damages, such as pain and suffering, distress, and loss of enjoyment of life.
In places like Westminster, where personal injury claims are common, using this method can be particularly effective in ensuring fair compensation.
A Westminster injury attorney might use this system to help calculate a fair settlement for a client recovering from a serious accident.
The process begins by calculating the total of your economic damages—which are your medical expenses, lost income, and other calculable economic losses.
This number is then multiplied by a multiplier, usually between 1.5 and 5, depending on the seriousness of the injury.
The Per Diem Method
The per diem system places a value on each day of the pain, suffering, or discomfort caused by your injury. The value of a single day is multiplied by the number of days your pain, suffering, or discomfort has lasted—typically from the injury date through your eventual recovery or maximum medical improvement.
For example, if your claim is $200 per day, your total payment for pain and suffering would be $30,000 if your recovery takes 150 days.
This process is more frequently employed when the recovery period is known. Daily rate selection is most important and frequently relies upon your daily income or how the injury affects everyday activities.
Actual Damages and Special Considerations
Aside from the usual damages of pain and suffering, the court or insurance firm also considers your actual or “special” damages. These are your true or tangible costs, such as medical bills, prescriptions, therapy, medical appointment travel, and lost wages from lost time at your job.
In some instances, long-term economic loss, such as reduced earning power or future medical treatment, is also encompassed.
It’s also worth noting that comparative fault can affect your compensation. If you are partially responsible for the accident, your compensation could be reduced by your share of fault according to comparative negligence rules.
This necessitates precise documentation and legal advice when claiming compensation for a personal injury.
Final Thoughts
Calculating fair compensation for a personal injury does not depend just on arithmetic. Carefully examining your damages, your injury, and the best means of expressing your suffering are all involved.
Whether by the multiplier or per diem methods or the use of both, knowing how payments are calculated strengthens your position in obtaining a fair settlement.
By obtaining evidence, keeping a record of losses, and consulting with a lawyer when necessary, your opportunity for receiving the compensation rises.
