How Is Compensation Calculated?
If you’re wondering how compensation is calculated, then you may find this guide helpful. We’ve included information on how a settlement is valued for claims in various areas of law, such as personal injury, medical negligence, data breach, professional negligence and criminal injuries.
The process is similar across many of them. However, there are differences. In addition, there can often be more than one figure to calculate in a claim.
Read on for more information. If you have any questions as you read regarding how compensation is calculated, you can get in touch with our advisors. They are available on a 24/7 basis, and may even maybe to value your claim for you.
- Call on 0800 073 8804
- Use the pop-up chat box
- Talk about your claim online
Jump To A Specific Type Of Claim
- How Is Compensation Calculated In Personal Injury Claims?
- How Compensation Is Calculated For Medical Negligence Claims – General Damages
- Data Breach Claims – How Much Compensation Will I Get?
- How Do You Calculate Compensation For Professional Negligence Claims?
- How Is Compensation Calculated For Criminal Injury Claims?
- Other Forms Of Compensation – How Much Will I Get?
- Get In Touch For More Information On How Compensation Is Calculated
How Is Compensation Calculated For Pain And Suffering In Personal Injury Claims?
If you instruct a solicitor to help you with your case they will as part of the process value your personal injury claim. “Personal injury” often refers to an injury caused by negligence in one of the 3 following scenarios:
- The workplace – For example, an office, warehouse, or construction site.
- Public places – Examples include public parks, supermarkets, and restaurants.
- Road traffic accidents – Drivers, cyclists, and pedestrians could all be injured.
The figure that compensates you for your pain and suffering is called general damages. When this amount is being valued, medical evidence, obtained as part of the claim, is often consulted so that the severity of your injury can be assessed. Factors such as the impact the injury has on your life are also considered.
There is also a publication that’s used called the Judicial College Guidelines (JCG), which was last updated in 2022. The figures in the JCG are based on court cases that have been successful in the past. Legal professionals use them to assist in their general damages calculations.
However, your own circumstances will also influence how much the figure is ultimately worth.
How Compensation Is Calculated For Medical Negligence Claims – General Damages
The valuation process for pain and suffering in medical negligence claims is very similar to that of personal injury.
Legal professionals consult both medical evidence and the JCG so they can reach an appropriate figure for your general damages payment.
Data Breach Claims – How Much Compensation Will I Get?
The JCG also contains figures for psychological injuries which are relevant to data breach claims.
Having your data breached could provoke distress and anxiety and result in your mental health being impacted. That is why the JCG is also used to value the psychological suffering caused by a data breach.
However, the figure is not referred to as “general damages” in data breach claims. It’s called “non-material damage”.
How Do You Calculate Compensation For Professional Negligence Claims?
If a professional such as a solicitor or financial advisor who has taken you on as a client causes you loss, then you may be able to claim. However, the figure is to account for the loss you’ve experienced. This separates the calculation method from other areas of law.
For example, if an accountant’s negligence causes you to lose £10,000, then the aim of the claim is to have you reimbursed for this £10,000 loss. However, 8% interest per annum is added to the value of a professional negligence claim for every year that’s passed since the loss.
How Is Compensation Calculated For Criminal Injury Claims?
Claims for criminal injury are often made through a government agency called the Criminal Injuries Compensation Authority (CICA). The money comes from the government, and the figures are taken from the Criminal Injuries Compensation Scheme 2012. The Scheme is essentially a tariff for those who have been physically and/or psychologically injured due to a criminal act.
They are set figures, and so two people suffering the exact same injury would be awarded the same figure for it. However, you can generally only claim for up to three injuries at a time. Although, only the most valuable is awarded at its full rate. The next two are awarded at respective rates of 30% and 15%.
Other Forms Of Compensation – How Much Will I Get?
Some settlements can comprise more than one figure. In this section, we’ve addressed them and sorted them by areas of law.
Special Damages – Personal Injury And Medical Negligence
This figure can be awarded at the same time as general damages. The purpose of special damages is to reimburse you for the financial impact of the injury or illness you’ve suffered. If you’re eligible to receive special damages, they can apply to claims for personal injury and medical negligence.
Here are some examples of what you could be reimbursed for via a special damages claim:
- Loss of earnings.
- Medical expenses.
- Travel costs.
- Walking aids.
- Prosthetics.
- Damage to personal property.
The figure, as with general damages, will be unique to you. You will also need to gather evidence to support this area of your claim. Receipts and payslips are good examples of this.
Material Damage – Data Breach Claims
As mentioned earlier, non-material damage concerns the psychological impact of a data breach. Material damage reimburses you for any financial loss caused by the breach.
This is calculated by assessing the financial impact of the breach. For example, if money is stolen from your bank account, this can easily be quantified. However, if credit has been taken out in your name, the true cost of this might not be clear so requires a deeper assessment.
Special Expenses – Criminal Injury Claims
This figure is similar in nature to special damages in personal injury and medical negligence claims. However, special expenses for criminal injury claims tend to be much more restrictive by nature.
For example, it’s possible to be reimbursed for a loss of earnings due to a criminal injury. However, the loss needs to have lasted at least 28 weeks before you can claim for this. Before the 28-week mark, you will not receive a loss of earnings payment.
Other special expenses you can claim for include:
- Physical aids, like a pair of glasses or a walking stick
- The cost of care in relation to the likes of cooking and bodily functions
- Any adaptations to property that are required because of the injury
Find out more about special expenses by getting in touch today.
Get In Touch For More Information On How Compensation Is Calculated
As you can see, the nature of your claim can dictate how your compensation is calculated. If you wish for more clarification, we welcome you to get in touch with our advisors today.
You can do so on a 24/7 basis. We also have information on the benefits of making a claim with one of our No Win No Fee solicitors.
- Call on 0800 073 8804
- Use the pop-up chat box
- Talk about your claim online
Additional Resources
We hope you now have a better understanding of how compensation is calculated in various areas of law. We’ve included some extra links below that may also be of use to you.
More From Us:
- Compensation Calculator – A resource of ours that can value your claim for personal injury or medical negligence. However, only general damages and loss of earnings are accounted for here. Get in touch for a full valuation of your claim.
- Personal injury compensation in Scotland – For our Scottish clients.
- Chronic pain injury claims – Read about claiming in instances such as these.
Information From Other Sources:
- Litigation friends – Information from the Government. In certain circumstances, the claimant will not be able to make their own claim. A litigation friend can be appointed to do so on their behalf.
- Legal jargon explained – A guide from the Solicitors Regulation Authority (SRA). They have simplified certain legal terms that can be confusing.
- How do I know if I’ve broken a bone? – An NHS guide.
