Personal Injury Compensation Claim – How do Insurance Companies Calculate the Claim Amount?

July 17, 2010 - 2:41 am 3 Comments


Personal injury claims are calculated by adding up the obvious & the incidental:
1. Medical treatment & rehab costs
2. Loss of income during injury rehab
3. Physical & mental distress caused by the injury itself

Insurance companies calculate the final compensation payable to you based on the severity of your injury.

For a simple injury, the compensation is (1.5 x damages cost) + total loss of income resulting from the injury

If the injury is severe, the compensation is (5 x damages cost) + loss of income

3 Responses to “Personal Injury Compensation Claim – How do Insurance Companies Calculate the Claim Amount?”

  1. mbrcatz Says:

    There’s no automatic formula – it depends on how the injury happened, what type of policy pays out, what the medical bills are, what the exact nature of the injury is, what the permanent disability is. It’s very much a judgement call.
    References :

  2. regerugged Says:

    There is no scientific way. A rule of thumb for a simple injury is to multiply medical expenses by five, add lost wages, add any other out of pocket expenses and use the total as the claim.

    If there is disability and/or scarring, the value of the claim increases.
    References :
    Retired claims adjuster.

  3. SS Fin Says:

    Personal injury claims are calculated by adding up the obvious & the incidental:
    1. Medical treatment & rehab costs
    2. Loss of income during injury rehab
    3. Physical & mental distress caused by the injury itself

    Insurance companies calculate the final compensation payable to you based on the severity of your injury.

    For a simple injury, the compensation is (1.5 x damages cost) + total loss of income resulting from the injury

    If the injury is severe, the compensation is (5 x damages cost) + loss of income
    References :
    http://InjuryClaim.annics.com

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