Personal Injury can be defined as any harm done to a person by the acts or omissions of another, whereas, Damages for personal injury are the monetary benefits that the injured party may claim from the party that they suffered at the hands of, in order to compensate for their pain, loss or suffering.
Physical injuries, emotional distress, medical malpractice, product liability, slip & fall and dog bites are the kinds most commonly reported by Australians. It’s also good to know that in a lawsuit, damages that are quantifiable (e.g. medical expenses, lost income, etc.) are referred to as special damages.
Overview of Personal Injury Law in Australia:
Damages for personal injury are often determined in the light of Personal Injury Law, which is based on both, common law principles and various statutory frameworks that may be state or territory-specific. Claims may be made not only for economic (medical expense, rehabilitation costs, etc.) and non-economic (emotional distress, pain) damages, but also, in some cases where gross negligence or intentional harm is suspected, the claimant may be granted additional punitive damages.
Calculating Damages:
Where the calculation of economic damages may often be as simple as estimating medical costs borne, or, earnings lost by the aggrieved party, calculating non-economical damages can be fairly tricky, for this type of loss is inherently subjective, intangible and often hard to prove, hence, in such cases, seeking legal aid usually comes in handy.
Law experts take into account questions like
• How severe was the claimed injury, The higher the severity, the higher go the chances of potential compensation.
• How badly does the injury affect the claimant’s daily life and their ability to function efficiently?
• For how long is the aggrieved party expected to experience pain and suffering, or loss of enjoyment of life?
Methodologies:
Courts of law use various tools and methodologies and rely on the opinions of multiple third-party experts to help them reach a reliable estimate for damages for personal injury and its reasonableness.
An element of uncertainty inevitably comes into the equation in case of an ongoing medical treatment or costs that are to be incurred in the future; services of actuarial science experts may be required at this point, to account for the uncertainty.
Other than uncertainty, costs related to the future inherently come with an inflation factor, so now, accountants may be called in to help calculate the future costs at the present value.
Sometimes, testimonies by the friends and family of the injured may play a crucial role for the court to have an idea of the loss of enjoyment in the life of the claimant and pin a monetary value on it as a result.
In the next step tools like the Multiplier method and/or Per diem method are used to calculate the value of damages for personal injury. In the multiplier method, the losses are multiplied by a factor usually ranging between 1.5 and 5, based on the severity of the injuries, to determine the total payout of damages. This method is common in cases where the picture of losses and injuries is comparatively clear. Per Diem method on the other hand works by assigning a monetary value to the pain and suffering of the plaintiff and then multiplies it with the number of days to figure out the sum of damages. This method is useful in cases where there are injuries with a clear impact on the daily life of the claimant.
In a few cases and in jurisdictions with comparative negligence laws, damages may be reduced by the court based on the plaintiff’s percentage of fault or responsibility to mitigate the loss.
Read more: Comprehensive guide to Filing a TPD claim for Back Injury
Settlements:
There are multiple methods, each having their pros and cons, that are used to arrange for the settlement of damages for personal injury. To aid our users’ understanding, we have created a chart below.
Lump-Sum Settlement
Pros:
Immediate access to funds
Simple and straightforward
Cons:
May not cover future expenses
Risk of mismanagement of funds
Structured Settlement
Pros:
Provides long-term financial security
Cons:
Less flexibility in accessing larger sums
Partial Settlement
Pros:
Quick resolution for some damages
May save legal costs
Allows for ongoing claims
Cons:
Future negotiations may become complicated
Potential for incomplete recovery
Mediator’s Proposal
Pros:
Facilitates compromise
It may help avoid a trial altogether
Cons:
Non-binding unless accepted by both parties
It may be tricky to reach a mutual agreement
Confidential Settlement
Pros:
Protects sensitive information
Prevents negative publicity
Cons:
Lack of transparency for future claims
May complicate legal precedents
Contact United Legal Canberra with all your questions regarding personal injury. We will help you get most of your claim! Talk to 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) 8355 907483 or email us at admin@unitedlegal.com.au. Scheduling an appointment takes just a few minutes.
