Seven factors that can influence the value of a personal injury claim
If you ask ten people the value of a personal injury case, you’ll get ten distinct opinions, all of which likely will be incorrect. In fact, value doesn’t simply fall from the sky and nor does it come from another person’s story. It is created based on your injury, your losses and the evidence strength.
It can be helpful to have an understanding of those blocks before anyone starts talking about a number. This guide explains the seven factors that are important, how compensation is split in the UK, what gets in the way of claims and who determines the final number. Grab a tea.
Factors That Can Influence the Value
There is no one number for value. If you know the basic facts right you can try any online personal injury calculator. Insurers and the courts will consider the following seven factors when evaluating injury claims.
1) Severity of the Injury
The more severe the injury, the larger the sum of general damages will be. A minor sprain is not in the same category from a pain, suffering and effects standpoint as is a life changing spinal injury.
2) Recovery and Prognosis
Courts take into account the length of time it takes to recover and how long symptoms last. Medical evidence is of great importance, as a full recovery may be valued at a different price than an lifelong condition.
3) Lost Earnings
Absence from work, working hours restrictions and loss of bonuses may be part of a valid claim. Wage slips and letters from employers make them into concrete numbers that insurance companies cannot ignore.
4) Future Care and Costs
Continued treatment, modified housing or diminished income potential may result in significant added value. These future losses can be difficult to forecast and hence they are always backed up by expert report.
5) Who was at Fault
Typically, you will have to prove that someone else’s negligence caused your injury. If you are at least partially responsible, you may be entitled to compensation minus the amount of your fault, a concept called contributory negligence.
6) Quality of Evidence
Witness information, accident reports, medical records, and pictures are all used to aid a claim. If you have solid proof, then your case is much simpler to prove and without it, they can always question you.
7) Impact on Daily Life
Wounds go beyond money-related aspects. Loss of hobbies and ‘psychological injury’ such as stress and anxiety after an accident can all be identified as general damages if supported.
How Is Personal Injury Compensation Divided in the UK?
You can’t win a big sum of money outright. It has categories that are subject to different rules and have various purposes.
General Damages
These are meant to compensate for the pain, suffering and loss of amenity. The Judicial College Guidelines, which recommend ranges, rather than precise amounts are used in England and Wales as a referral guide for courts.
Special Damages
These repay financial losses you can provide evidence for, like lost wages, travel expenses and prescriptions. Receipts are important and so are payslips because special damages are evidence based.
Future Losses
In cases where the effect is long-term, the compensation includes the cost of future treatment and lost wages. The compensation is normally in a single amount, but there are instances where payments are made periodically.
Deductions
Not all pounds make it into your pocket. Some of these benefits are recovered via the Compensation Recovery Unit and any ‘success fee’ might also be from your damages.
What Can Delay or Complicate a Compensation Claim?
Disputed liability
The claim takes longer if the other side denies they are at fault, or if the other side blames you for it. You then will need to have additional investigations, additional proof and visit even court!
Unclear Prognosis
Once the initial period of your condition has reached a full stabilisation the solicitors are likely to go ahead and value a claim. Settlements made early on may result in undervaluing the consequences of the injury and the settlement is final.
Weak or Missing Evidence
When records are missing, receipts are lost or an accident occurs that is not reported, there are opportunities for the other side to exploit. Obtain the necessary paperwork early and enquire with your solicitor as to what they will require.
Multiple Parties or Insurers
When actions involve multiple employers, contractors or insurers, there is a need for further investigation. The percentage share contested by either party can be the additional delay before offers finally come.
Who Decides How Much a Personal Injury Claim Is Worth?
Your Solicitor and the Insurer
Numerous claims resolve by negotiation. Your solicitor presents evidence plus valuation, the defendant’s insurance company responds and both parties negotiate to a consensus.
Medical Experts
Medical reports will contain a description of your injury, recovery and prognosis. They offer the best basis for the valuation and any insurance company or court would take great note of their findings when selecting a bracket.
The Court
When parties cannot agree, then a judge can make a decision. This is a “last resort” option since not all cases will go to court and the process is lengthy and expensive.
Conclusion
Value of the claim is determined by the extent of injury, loss, blame and evidence, not speculation. Collect evidence early, familiarise yourself with the process and consult a licensed lawyer before accepting any offer.
