How Non-Economic Damages Are Calculated in Personal Injury Claims

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After getting injured because of another person’s negligence, you may be entitled to compensation through a personal injury claim. You can claim two types of damages: economic and non-economic. Economic damages are pretty straightforward to calculate because you can use pay stubs, medical bills, or receipts.

Non-economic damages are more difficult to get a value since these cannot be quantified. It is best to hire a local personal injury attorney who is familiar with the state laws to ensure you get fair compensation for both economic and non-economic damages.

What Are Non-Economic Damages?

Non-economic damages refer to losses that don’t have a direct financial value but can still significantly affect your quality of life. For example:

  • Physical discomfort and chronic pain.
  • Emotional distress and anything that affects your mental health like anxiety, depression, or PTSD.
  • The negative impact of your injuries on relationships with family or your spouse.
  • Loss of enjoyment of life and not being able to participate in activities you enjoyed.

Non-economic damages require a more subjective evaluation since there are no documents or receipts.

Common Methods for Calculating Non-Economic Damages

There are two methods used to calculate non-economic damages:

1. The Multiplier Method

In this technique, you calculate the total economic damages like lost wages and medical expenses. After that, the total value is multiplied by a number between 1.5 and 5. The more severe your injuries are, the higher the value assigned.

The factors used to determine the multiplier include:

  • How severe the injuries were.
  • Long-term impact on your daily life.
  • How long it takes to recover.
  • Did the injuries cause a permanent disability or any kind of impairment, like scarring?

Therefore, if your economic value is $100,000 and the multiplier assigned is 2, your non-economic damages will be $200,000.

2. The Per Diem Method

Per diem is a Latin word for “per day.” In this method, a daily rate is assigned for the pain and suffering or non-economic damages. This daily rate is then multiplied by the days you experience or will experience your suffering.

This daily rate is normally based on your daily income, though the circumstances may vary. For example, if your daily rate is $200 and you experience pain in 180 days, you will receive $36,000 in non-economic damages.

The Challenges of Proving Non-Economic Damages

Proving non-economic damages often requires medical records that can prove your physical pain and the psychological impact. You may also require expert testimonies to prove the long-term consequences of your injuries.

A personal testimony and witness statement is also required to describe how the injury has affected your daily life and emotional well-being. Psychological evaluations may also be necessary to assess emotional distress and mental effects.

Getting all this information may be very challenging. That is why victims are advised to work with a personal injury attorney to help in navigating the process.

Conclusion

Non-economic damages are a part of the compensation you are entitled to in your personal injury claim. These damages can affect your quality of life. Even though arriving at a fair sum can be hard, the multiplier and per diem methods are used to get an estimate.

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