How Do Insurers Value an Injury Claim?

Thursday, August 15, 2013

How Do Insurers Value an Injury Claim?

Written by Malman Law, reviewed by Steve J. Malman.

It isn’t an easy task to determine how much accident injuries are worth in a claim. Settlement amounts depend entirely on individual circumstances, and as a result there are many ways that insurance companies determine the value of a plaintiff’s case.

Conditions of Insurance Company Compensation

You should have as much of an understanding as possible of the kinds of damages that entitle you to compensation. Here are some of the aspects of an accident case that liable parties must pay to victims:

• Damaged property
• Loss of various experiences including school, training, vacation or special events
• Permanent physical disfigurement or disabilities
• Lost income because of time spent in hospital stays or other treatments
• Emotional damages relating to an accident, such as stress caused by a sudden inconvenience in living situations

The Effective Damages Formula

Because of the varying degrees of injuries, determining their value isn’t simple. Insurance companies also need to figure out how much lost experiences and opportunities require in compensation. These factors are why a damages formula is helpful for insurers.

Claim negotiations start with a total sum in medical expenses, which an insurance adjuster determines. Through the amount of these “medical special damages,” or “specials,” the adjuster can then find out how much an injury victim should receive for emotional and physical suffering, as well as other nonmonetary losses, or “general damages.” The adjuster multiplies medical specials by 1.5 or 2, and can multiply up them up to 10 times for serious injuries, which helps determine the amount owed because of lost income.

The most important factor to determine the full compensation amount is percentage of fault. The percentage of fault calculates how much responsibility each person has in a case, and the percentage of the victim’s involvement will decrease the amount owed.

A personal injury attorney can help determine how much your personal injury claim is worth, and work to get you the right compensation. Request a free consultation today.