In Australia, “pain and suffering” is a component of compensation typically awarded in personal injury cases. It is considered a type of non-economic loss, which includes emotional distress, loss of enjoyment of life, and physical pain caused by an injury. The calculation for pain and suffering compensation varies depending on the state or territory and the case’s specific circumstances.
How is pain and suffering calculated?
But before we go any further on the calculation of pain and suffering, let’s see what it means. This involves physical and mental pain which you suffer because of your injury. Mental health issues such as depression, anxiety, and PTSD also qualify as pain and suffering It also involves impairment to the injured person’s relationships and social life, as well as disturbances in sleep caused by the injury.
Statutory Limits:
In Australia, some states have what are called statutory caps/limits on how much compensation you can get paid for pain and suffering. Such limits are subject to very wide variation between states and territories. For example:
New South Wales (NSW)
In NSW, personal injury claims are covered by a threshold and there is also a cap on the amount of compensation payable for pain and suffering. The only injuries which are eligible for compensation under the law are those deemed “serious” (usually measured as a percentage of whole-person impairment).
Victoria
Compensation is awarded for economic and non-economic losses, however, there are thresholds that must be met before the individual can receive compensation.
The impact on Daily life:
How much a person’s daily life has been impacted by the injury often defines how pain and suffering compensation is calculated. If a person’s life is significantly affected by the injury, they will receive substantial compensation.
In many cases, the severity of the injury and the degree of impairment (such as a percentage rating of whole-person impairment) are used to assess compensation. Medical assessments are usually required to determine how much the injury has affected the person’s life.
Medical cost
The process of calculating medical costs is not too complicated. Compensation for any medical expenses incurred by the injured person as a result of the accident is granted under this heading of damages. This can also cover transportation to and from doctor’s appointments, prescription drugs, and medical supplies like wheelchairs or crutches.
Future medical expenses may be claimed in certain situations where an injury necessitates continuing medical attention. Once more, the court will use the advice of medical experts to help determine this amount. Future medical costs could cover the cost of a nursing service, more treatments, or new equipment.
Negotiations and Settlements
In most cases, the award for pain and suffering is resolved without even having to go to court as both sides negotiate a settlement that represents this type of damages. A number of factors drive the settlement negotiations, such as how serious the injury was, medical reports and what a likely award might be if this case went to trial.
The precise formula or sum may vary by state/territory law and the specific details of each claim.
Read more: Comprehensive guide to Filing a TPD claim for Back Injury
Need help with pain and suffering claims?
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Contact our representative today for a free consultation. We will review your insurance needs and take prompt action on your behalf. For more information, call us at (02) 6295 2283 or email us at admin@unitedlegal.com.au. Scheduling an appointment takes just a few minutes.