Typically, there are two types of damages in a car crash: monetary and intangible. Economic damages are the money an injured person loses because of their condition, such as from medical expenses and lost wages. Yet, general damages, often known as non-economic damages, are intangible and cannot be quantified. Compensatory damages might include money paid for medical bills, lost wages, and counseling after a traumatic event. Physical pain, like a, sprained back or a concussion, or mental anguish, like stress, might amount to these types of damages. Typically, claimants will use either the “multiplier” or “per diem” technique to determine the monetary value of their pain and suffering. Click here to learn more!
Problematizing the Cost-Benefit Analysis of Suffering
Damages for mental anguish are often calculated using a multiplier. After calculating their economic damages, claimants apply a predetermined multiplier to that amount to establish the dollar amount they should receive for their mental anguish. Historically, economic losses have been multiplied by three, but this multiplier is case-specific.
Insurance firms are increasingly rejecting calculations based on this methodology despite its widespread use. These days, the multiplication factor is calculated by computer software. To calculate the multiplier, the program takes into account details, including the severity of the injury, the presence of any exacerbating conditions, and the amount of time required for recovery. The multiplier is often between 1 and 4, depending on the seriousness of the incident. This method now considers the seriousness of the event; a minor collision, for instance, would not be given the same multiplier as a major collision that sent several people to the hospital.
Systematic Daily Pricing
The daily rate technique, also known as the per diem method, determines compensation based on the amount of money lost by the claimant as a direct result of the vehicle accident; in this case, you should contact an Indianapolis car accident attorney. This standard payment is often based on the beneficiary’s monthly income. The claimant is permitted to assert a sum in addition to income; nevertheless, adequate documentation and facts justifying the claim are required.
Many people combine the multiplier and per diem approaches to acquire the most accurate estimate possible. The claimant will need to adjust the amounts both approaches estimate depending on criteria, including the severity of the injuries, the length of time the claimant was unable to work, whether or not any other parties were wounded, etc.