The question, “How much?” is a crucial concern for anyone making a claim. Here, you will find more details about the process of calculating compensation amounts.Discover more About Us.Call us on 01225 462871 or complete the Contact Form. |
Compensation amounts
Understandably, the question of compensation amounts is a crucial concern for anyone pursuing a claim. However, in most cases, except for lower-value claims, it is difficult to determine the exact amount at the start. Here, we explain the process for calculating the amount of your compensation claim.
For examples of compensation amounts we have secured for other clients, see our various Case Studies and numerous Testimonials.
Damages
Legally, the overriding aim of compensation (more accurately called ‘damages’) is to restore you to the same financial position you would have been in if the accident had not happened. As you might expect, this often involves a fair amount of guesswork!
A common misunderstanding is assuming your damages form a single, indivisible lump sum. Instead, as we will see below, the total damages you receive are an aggregate of many individual ‘heads of claim‘.
Causation
The starting point with damages is that the burden of proving everything you have lost rests with you as the claimant. Therefore, when it comes to damages, you need to provide evidence of that loss. Depending on what you are claiming, this evidence might include medical reports, witness statements, wage slips, and receipts – and most likely, all of the above!
As an example of how causation works, see our article: Establishing causation in a CRPS Compensation Claim.
“Although I know nothing will totally restore my health, I’m grateful at least that my family and I now have some financial independence. Thank you so much.” B.C.
Heads of claim
Let’s examine some of the common heads of claim that you might have arising from the accident.
Pain, suffering and loss of amenity
It is appropriate to begin with the damages for your injury. Known as ‘general damages for pain, suffering and loss of amenity‘, this head is usually shortened to ‘general damages‘ or ‘PSLA‘.
In calculating general damages, the starting point is always the official guidelines used by judges – the Judicial College Guidelines (JCG) – currently in its 17th edition. For example, let’s consider how the JCG addresses one of the most common conditions we encounter: Complex Regional Pain Syndrome (CRPS). The JCG first outlines the various factors to consider when valuing claims for pain disorders (including CRPS), such as the following:
- the degree of pain experienced;
- the overall impact of the symptoms (which may include fatigue, associated impairments of cognitive function, muscle weakness, headaches etc. and taking account of any fluctuation in symptoms) on mobility, ability to function in daily life, and the need for care/assistance;
- the effect of the condition on the injured person’s ability to work;
- the need to take medication to control symptoms of pain and the effect of such medication on the person’s ability to function in normal daily life;
- the extent to which treatment has been undertaken and its effect (or its predicted effect in respect of future treatment);
- whether the condition is limited to one anatomical site or is widespread;
- the presence of any separately identifiable psychiatric disorder and its impact on the perception of pain;
- the age of the claimant;
- prognosis.
Next, for CRPS, the JCG define two distinct damage brackets: severe and moderate.
Severe CRPS
“In such cases the prognosis will be poor; ability to work will be greatly reduced if not completely eliminated; significant care/domestic assistance needs; coexisting psychological problems may be present. At the top end of the scale, symptoms may have spread to other limbs. £64,070 to £102,520”
Moderate CRPS
“The top end of this bracket will include cases where significant effects have been experienced for a prolonged period but prognosis assumes some future improvement enabling a return to work in a significant (not necessarily full-time) capacity and with only modest future care requirements. At the lower end will be cases where symptoms have persisted for some years but are more variable in intensity, where medication is effective in limiting symptoms, and/or where the prognosis is markedly better, though not necessarily for complete resolution. May already have resumed employment. Minimal, if any, future care requirements. £34,200 to £64,070”
The position of your claim within a specific bracket mainly depends on the medical evidence produced.
These figures show that even the most serious and life-changing injuries and medical conditions attract only minimal damages for pain, suffering and loss of amenity. A notable comparison is the JCG range of damages for a below-knee amputation of one leg, which is £119,570 to £162,290.
“I’m beyond happy. You’ve been so amazing and it’s going to seem weird not to have you and the claim in my life any more.” F.R.
Past losses
Next, when calculating your compensation amounts, you consider your total financial losses up to the date the claim is settled. These are called ‘past losses’ or ‘special damages’. It is impossible to provide a complete list of what you can reasonably claim. Nevertheless, typical examples include lost earnings, treatment expenses, travel costs, the expense of buying medical aids and specialist equipment, and the cost of property modifications.
Again, providing evidence for every item claimed is essential. You should keep a detailed list of losses and expenses and retain all receipts, invoices, and any other proof of expenditure.
Future losses
Future losses are those you are likely to face after settling your claim. Some heads of claim will cover your whole life, while others will be for a limited period. For example, if you are unable to return to work, you typically claim for lost earnings up to an anticipated retirement age.
In most claims involving chronic pain, future losses constitute the largest part of the claim by a wide margin. Consequently, they are the most contentious with the other side.
Since predicting the future is involved, calculating future losses is complex. The standard approach is to calculate the net annual loss for a specific head of claim (the ‘multiplicand’) and multiply it by a factor (the ‘multiplier’) to arrive at a lump sum award. Multipliers are derived from a detailed set of actuarial tables (the ‘Ogden tables’) approved by the court. As even a slight change in the multiplier can significantly impact the amount of damages, they are a key point of focus for both parties.
For helpful and topical information covering all aspects of living with chronic pain, check out our Chronic Pain Blog.
Schedule of loss
Once you have gathered all your evidence, including a long-term medical prognosis, your solicitor or barrister prepares a final schedule of loss. The general structure of this detailed document is broadly as described above:
- General damages for pain, suffering and loss of amenity
- Past losses
- Future losses
The schedule also details the statutory interest claimed on general damages and past losses.
It is important to remember that the final schedule largely reflects a best-case scenario. In other words, the total figure at the end of the schedule might be achievable if:
- you succeed on every point (which is very unlikely); and
- the judge consistently exercises discretion entirely in your favour (again, unlikely).
Compensation amounts: The defendant’s evidence
In many cases, chronic pain conditions are life-changing. Therefore, claims are usually substantial, often reaching high six or even seven figures. Understandably, defendant insurers are prepared to spend considerable time and money trying to defeat or significantly reduce your claim. The defendant’s main weapon is medical evidence. However, they will also attempt to undermine your credibility through witness testimony, video, and social media surveillance. It really can be a dirty business!
The importance of instructing the right solicitor
To ensure you receive the compensation amounts you are entitled to, it is important to instruct a solicitor with considerable expertise and experience in chronic pain compensation cases. We will approach your claim proactively, working with you, preparing thoroughly, and anticipating the ‘surprises’ the defendant inevitably has in store.