How Are Personal Injury Settlements Calculated? 

Calculation of Personal Injury Settlement 

The most common question you can ask yourself when you have been in an accident is: “How much is my case worth?” 

The question will be answered depending on various factors that may include the intensity of your injuries, financial damages, and the impact of the injury on your normal lifestyle. 

Although cases are never the same, knowledge on settlement calculation can make you make a wise choice. A Grillo personal injury lawyer can also be consulted early to answer the question of the application of these factors to your case. 

What Is a Personal Injury Settlement? 

Personal injury settlement is the financial contract between the injured individual and the party at fault (or his insurer). Rather than taking the case to court, both parties settle on the amount of compensation to settle the claim. 

Settlements are meant to give you damages on the loss caused by the injury and not the windfall. The idea is to get you to the extent possible back to where you would have been without the occurrence of the injury. 

Significant Factors, Which Influence Settlement Amounts 

The value of a personal injury claim is determined by a number of factors: 

Severity of Injuries 

The gravity of your injury is one of the most crucial factors. 

Generally: 

• Less serious cases (e.g. soft tissue injuries) lead to less significant settlements. 
• Worse or irreversible injuries (e.g., brain damage, spinal damage) are better compensated.
• Medical records are very important in determining the level and effects of your injuries. 

Medical Expenses

You could be paid sums of money to cover the past and future medical expenses such as: 

• Hospital checkups and operations. 
• Prescription medications 
• Physiotherapy/ rehabilitation. 
• Assistive equipment or follow up. 

Experts in medicine tend to estimate future care costs based on expert opinions. 

Loss of Income 

In case your injury does not permit you to work, you can claim: 

• Lost wages during recovery. 
• The future earning capacity can be lost in case you are not able to resume the old job.

This is particularly so when it comes to long-term or permanent disability. 

Pain and Suffering 

There can also be compensation of non-financial losses that are more commonly termed as pain and suffering. 

This includes: 

• Physical pain, 
• Emotional distress, 
• Loss of enjoyment of life. 

The number of cases in Canada with a legal limit on pain and suffering damages is quite high, especially in regard to non-catastrophic injuries. 

Impact on Daily Life 

The courts and insurers look at the impact of your injury on your capacity to perform daily tasks including: 

• Household responsibilities. 
• Hobbies and recreation. 
• Personal relationships. 

Your and your family as well as medical professional statements can prove this effect. 

In Ontario, Special Considerations Are to Be Made 

Personal injury claims in Ontario, particularly that which is a result of motor vehicle accidents, are under certain rules, which may influence the settlement amounts. 

Deductibles on Pain and Suffering

Regarding most claims, a deductible is enforced on damages on pain and suffering unless such an injury has achieved a specified level of seriousness. This may considerably lower the amount of the final award. 

Accident Benefits by Statute 

People who are injured in car accidents may receive Statutory Accident Benefits, no matter who is at fault, and this may include: 

• Rehabilitation and medical costs. 
• Replacement benefits of income. 
• Attendant care 

This is in addition to the benefits independent of any lawsuit and can influence the total compensation you get. 

Limitation Periods 

Strict time limits have been established when a claim can be started. Mostly, the period of time that you have to start a lawsuit is two years since the accident, but in some situations, the requirement of earlier notice can be applied (municipalities claim). 

What Is the Real Process of Settlement? 

Settlements are not calculated by one formula. Rather, claims are evaluated by insurers and other legal professionals using: 

• Recorded loss of money (e.g. medical bills, loss of income). 
• Past court rulings and agreements (similar cases). 
• Expert reports (medical, vocational, actuarial). 

The chance of winning in case of a trial in the court. 

In most instances, negotiation is a factor. Both parties balance the risk, cost and time they will take up to court in making the decision of settling. 

Do All Cases Go to Court? 

The majority of personal injury cases are settled by settlement instead of trial. 

Settling can: 

• Reduce legal costs, 
• Offer quicker payment, 
• Avoid the uncertainty of a court decision. 

Nevertheless, in case of an inability of a fair settlement, the case can be taken to litigation where there is a judge (and occasionally a jury) who will rule.

Why Documentation Matters 

There must be strong evidence when establishing the value of your claim. 

There are useful documentation, which include: 

• Medical records and treatment history. 
• Evidence of earnings and working histories. 
• Invoices on out-of-pocket payments. 
• Written records about your symptoms and restrictions. 

The better and longer you document the better you can prove the extent of your harm. 

Final Thoughts 

The personal injury settlements rely on thorough evaluation of financial and personal damages. Although it is tempting to consider one number, the worth of a claim is influenced by various factors, which are interdependent on each other. 

In the settlement calculation, knowledge can assist you in getting realistic expectations of the process and make rational choices of your further actions.