How Is Accident Compensation Determined?

In spite of various precautions put in place, accidents are still inevitable, and anyone can be a victim. Such tragedies may occur due to negligence or poor technical conditions of the machinery. Mechanical hitches are a normal occurrence, and they’re among the leading causes of car accidents. Human-related factors also play a huge role in the same. The unfortunate fact is that drivers rarely learn from their mistakes, and that leads to a repeat of similar situations.

Typically, it’s very difficult to find the value of pain and suffering in case of an accident. However, insurance companies try to define this factor based on each specific situation. Once the compensation value has been determined, the settlement check process begins. This can take up to three weeks, depending on the situation and the speed of those involved.

In this article, we’re going to define what pain and suffering is and how an insurance company estimates its value.

Defining “Pain And Suffering”

Every accident victim experiences losses in one way or another. If you find yourself in such a situation, you might come out injured or have your vehicle damaged. Each one of these will definitely have an impact on your life. 

Of course, among the things to do after an accident is talking to a lawyer. They’ll not only guide you through the settlement process, but also ensure that you get the best compensation possible. So, how is compensation value determined?

Well, usually, this is calculated based on the “measure” of pain and suffering. Pain and suffering is generally categorized into two: physical and mental. According to the law, these are considered as damages which involve economic damages like hospital bills and other expenses incurred for your treatment. In other cases, one might ask for compensation for the time lost during which they would, otherwise, be out there working or spending time with family.

Estimation Of Compensation

Any insurance company is expected to cover the following in case of an accident:

• Medical bills and related expenses
• Lost income
• Permanent physical disfigurement
• Emotional damage due to the above costs

These expenses will only be covered if there’s evidence of going to the hospital and receipts presented before the company. Some companies assume that the more you stayed in the hospital, the more the pain and suffering. Similarly, the lesser time you spent in the hospital, the lesser the pain and suffering. Many insurance companies use a multiplier method to calculate the value of the pain and suffering caused. 

This method works by applying a multiplier to the sum total of special damages that are quantifiable. For example, following a car accident, your medical bill was $6000, and you incurred a lost wage of $2000 then the sum of the total damage amount will be $8000 multiplied by a figure between 1 and 5. In most cases, three will be used, which will be $24000.

This will generally increase or decrease, depending on the severity of your injury, time spent in the hospital, and the lost income during your time of recovery. There are cases when the multiplier exceeds five. This happens when, for example, the at-fault driver was intoxicated or under the influence of drugs at the time when the accident occurred.

There are criticisms about the multiplier method, like there’s no standard multiplier because every lawyer has a different multiplier value, and the multiplier fails to have a lifetime solution cost for any damage that will be caused for the rest of your life.

There’s also another valuation method referred to as per diem method. This is actually creating a budget amount someone receives daily or weekly after an accident during the time of recovery from pain and injuries.

Evidence For Validating Compensation

To determine the value of pain and suffering of a client, the insurance company has a couple of things to look into before validating your compensation. There has to be supporting documents on the following:

• Medical bills and records
• Drug prescription 
• Medical check-up records
• Photographs of your injuries and car damage
• Receipts of the expenses
• A letter from your employer showing your lost time at work
• Any other supportive document that might be of help

In case you want a compensation then the company has to review the above evidence for you to be compensated. 

Conclusion

From above, we can conclude that it’s much advisable to hire an attorney for this case. Such lawyers are specifically trained to calculate your maximum value of compensation because of their professional experience and knowledge. However, some lawyers exaggerate your worth or others diminish your actual value. Therefore, you have to choose wisely which attorney to hire, should you opt to do so. Accidents can be prevented by strictly following safety and control measures.