Advice On How Compensation Is Calculated

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How Is Compensation Calculated?

Have you had an accident that was not your fault? Do you believe that you would be eligible for compensation? Would you like to know how is compensation calculated? 

We explain the types of losses whether it be for the pain and suffering caused by the accident or the out of pocket loss (loss of earnings, travel, care and assistance, medical treatment or other costs) caused by the injuries you suffered and how these can make up your settlement for personal injury compensation. 

We also explain how having the help of an expert solicitor working on a No Win No Fee basis can be beneficial for your personal injury claim. 

At Legal Advice, our team of advisors are dedicated to assisting you and will answer any questions you may have in a no obligation chat:

Plastic men held over stacks of coins showing how compensation is calculated.

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How Is Compensation Calculated? 

When calculating compensation, the damages could be split between “General Damages” and “Special Damages”. General damages are compensation for your pain, suffering, loss of amenity, or PSLA. Whereas Special Damages are all “out of pocket” losses that can include anything from loss of earnings, care and assistance, medical treatment or travel costs that you experienced due to your injuries. These are known as ‘heads of loss’.

If you want to know, how is compensation calculated, if you make a successful claim, you could be awarded up to both heads of loss, or just general damages. In order to claim special damages, you will need to present documentation of your losses. This can include items such as receipts, invoices and your wage slips.

To help calculate your general damages, those responsible for valuing your claim may use a tool known as the Judicial College Guidelines (JCG). These guidelines provide details and valuations for injuries that you might have suffered. The JCG provides us with guideline valuation brackets for each injury, whether it be a minor or serious injury, a fatality, a loss of a limb or a bruised knee. Depending on medical evidence and prognosis periods this will determine the amount of compensation that is awarded for your injury and/or injuries. 

If you have any questions about how compensation is calculated, or if you would like a free valuation of your personal injury claim, please contact one of our team members on the details above.

How Much Personal Injury Compensation Could I Receive For My Injury?

When calculating compensation, those doing so will use a number of different tools to reach a correct and fair amount. As previously mentioned, this can include a combination of your medical reports along with the JCG. 

Below, you can see some examples of compensation brackets taken from the Judicial College Guidelines (JCG). The first entry in this list hasn’t been taken from the JCG and is purely illustrative. As every claim is different, these figures are only intended as guidance.

Compensation Guidelines

  • Multiple severe injuries and special damages could result in payouts up to £1,000,000+.
  • Very Severe Head Injuries resulting in little to no response to the surrounding environment could result in £344,150 to £493,000.
  • Moderately Severe Head Injury resulting in the person being severely disabled and requiring constant care may be valued between £267,340 to £344,150.
  • Moderate Head Injuries resulting in an effect on a person’s sight, speech, and senses with a  risk of epilepsy, and with an effect on the open job market could be compensated between £183,190 to £267,340.
  • A severe knee injury with serious damage and disruption to the joint, with a chance of developing osteoarthritis or gross ligamentous damage which could range between £85,100 – £117,410.
  • Moderate knee injuries, such as a dislocation, a torn cartilage or meniscus which results in minor instability could be valued between £18,110 to £31,960.
  • Severe Fractures to Fingers potentially lead to minor amputation and/or result in a deformity, poor grip, and reduced functioning, reaching up to £44,840.
  • Moderate Hand Injury where surgery has failed and a permanent disability remains could reach between £6,910 to £16,200.

To further discuss how is compensation calculated, contact a member of our advisory team.

Can I Claim Personal Injury Compensation If The Accident Was Partly My Fault?

The short answer to this question is Yes. There are different factors that will be taken into account when calculating the compensation for a personal injury claim. If you can prove:

  • The Defendant (Third Party) owed you a duty of care. This is a legal obligation that is placed on individuals or organisations to take reasonable care to avoid causing foreseeable harm to others. 
  • The Defendant ( Third Party) breached this duty. 
  • As a result of this breach, you sustained injuries. 

Taking the above into account it must be noted that the court could reduce the amount of compensation to reflect your degree of fault. This is when we would rely upon the defence of contributory negligence (when you contributed to your injury) and split liability (when you contributed to the accident). 

If you are found partly at fault for either the accident that caused your injury, or the injury itself, your compensation will be reduced accordingly. For example, if you are found to be 20% responsible for the accident, you can only receive up to 80% of the compensation.

To discuss how is compensation calculated in contributory negligence cases, please speak to one of our advisors.

What Deductions Will Be Made To My Compensation?

Depending on how you make your claim will ultimately have an impact on the deductions made to your compensation. For example, if you made your compensation claim via a No WIn No Fee solicitor and it was successful, the following deductions may apply:

  • Success fee, which is subject to a legislative cap.
  • A deduction for After the Event (ATE) insurance if this was taken out on your behalf by your solicitor.

If you make your claim in a different way there will be other deductions that will apply. For more information please call our advisors who will provide you with free advice regarding deductions that can be taken from your compensation.

Can I Make A No Win No Fee Personal Injury Claim?

If you are eligible to make a personal injury claim, you may wish to have a solicitor’s support. One of our expert personal injury solicitors could help. Our solicitors have many years of experience and expertise with personal injury cases. Furthermore, they provide their services on a No Win No Fee basis. 

They can assist with obtaining evidence to support your claim for compensation, whether it be medical reports, employee records, public records or police reports. They can make contact with the third party’s insurers and negotiate your settlement. 

You can proceed with our specialist solicitors under a Conditional Fee Agreement. This is a type of No Win No Fee arrangement. For you, it means that:

  • There are no upfront costs.
  • You won’t be asked to cover ongoing fees as the claim progresses.
  • There also aren’t fees to pay for your solicitor’s work on your personal injury claim should it fail.

The only amount you pay is deducted from the compensation awarded to you. This is known as a success fee and it will only be taken if your claim succeeds. A legislative cap limits this amount. 

Should you have any queries or would like to proceed with a personal injury claim,  then please contact a member of the team. In addition to discussing how is compensation calculated, they can advise on how much your claim could be worth. Furthermore, they can also assess your eligibility to seek compensation. 

A No Win No Fee solicitor explains how to calculate compensation to a client at his desk.

Learn More About Personal Injury Cases

Please check out the links below that could help if you are considering making a personal injury claim:

Further resources:

Thank you for reading our guide about how is compensation calculated. If you have any further questions, or if you would like to start a claim, please get in touch.

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    Meet The Team

    • Patrick Mallon legal expert author

      Patrick is a Grade A solicitor having qualified in 2005. He's an an expert in accident at work and public liability claims and is currently our head of the EL/PL department. Get in touch today for free to see how we can help you.

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