The harm caused by another’s negligence, no matter what the cause, can have a negative impact on a person’s work, life, and relationships with others.
The damage can be so severe that the victim is forced to live with the consequences for the rest of their lives. All victims should receive fair compensation, regardless of their severity.
A lawsuit can be costly, and depending on the verdict of the jury, the chances of obtaining a fair settlement can be low. It is usually better to settle personal injury cases outside of court.
How can you make sure you are fairly compensated for your injuries? Personal injury lawyers can guide you through the process of determining the severity of the damage and negotiating with the insurance companies.
How to Calculate a Personal Injury Settlement
Calculating a fair settlement involves calculating the economic damages and non-economic damage.
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Economic Damages
These economic damages can be easily accounted for, since they include the costs incurred in order to recover from injuries as shown by bills and receipts. The following can be included in these damages:
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Medical bills including medicine, therapy and doctor’s fees.
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Lost wages due to inability to report for work; and
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The cost of repairing or replacing damaged property.
Economic damages include future expenses resulting from an injury, in addition to the costs already paid and incurred. Some examples are the need for additional medical care and potential loss of income due to permanent impairments or disabilities.
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Non Economic Damages
Non-economic damages can be more difficult to calculate than economic damages because they are based on intangibles and the amount of pain the victim has endured due to the injury. Negligence can negatively impact the victim’s quality of life by causing anxiety and trauma. Negative effects of negligence must also be compensated.
Injuries lawyers calculate compensation using the multiplier method or the per diem method.
- Multiplier method: Settlement amount is calculated by multiplying the total economic damages by any number between one and five. The multiplier depends on the severity. A higher multiplier will be used when the injury is severe.
- The Per Diem method compensates victims for every day that they are injured. The daily cost may be determined by the victim’s wage.
Working with an attorney who specializes in personal injury law to assess your case, calculate non-economic damages and arrive at a fair settlement is a good idea.
Factors affecting the settlement value
Insurers of the at-fault party will most likely try to find ways to reduce settlement amounts. Compensation may increase due to certain factors.
- Seriousness of the Injuries: Some injuries can have lifelong consequences for the victim. A vehicular accident, for example, may have caused a permanent disability. The loss of wages could be taken into account if the person is unable to return to work. The settlement amount may therefore increase.
- Shared responsibility: In some cases, victims are partially responsible for their injuries. Settlements may be reduced when two parties are jointly responsible.
- Insurance policy limits: If the insurance coverage of the party at fault is not enough, the victim may prefer to sue than receive an unfair compensation.
When to Accept a Settlement Value
You and the insurers of the party at fault may need to negotiate for months before you reach a final settlement. Injury lawyers can assist you in the negotiation process and ensure that you receive fair compensation.
Some people settle their personal injury cases without an attorney. In this situation, it is best to only accept a settlement after you have recovered. You can then return to your job without any permanent injury.
Ask your doctor for a medical clearance so that you are sure you don’t require any further treatment. It is important to check that the offer covers all of your medical costs and lost wages including travel expenses.
Final Thoughts
After suffering personal injuries due to negligence, it can be hard for victims to recover. To help them recover, it is important to provide the right compensation. It can be difficult to determine a fair settlement amount. To ensure that all damages, economic and non-economic, are taken into account it is a good idea to thoroughly assess the case. A personal injury attorney can help you ensure that you are fairly compensated.