Personal Injury: How is compensation assessed

A claim can only be properly valued once the injury has resolved or has settled to a stable condition such that the medical expert can give a final prognosis. It is also necessary to assess what financial losses can be included in the claim – which often depends on the medical evidence particularly in claims with permanent ongoing symptoms.

Damages broadly fall into three categories:

General damages

This award is intended to compensate for pain, suffering and loss of amenity (meaning the ability to do certain activities).  The amount of compensation is assessed on the basis of medical evidence regarding the extent, duration and impact of the injury.  Guidance is available to judges in the form of a range of compensation for particular injuries. Previously decided cases with broadly similar injuries are also relevant.    

Special damages

These are financial losses and expenses incurred as a result of the injury such as loss of earnings, travelling expenses to medical appointments, medication and private medical treatment. It may be possible to claim for unpaid care or help with household activities received from others, often family members. An employer may require you to reclaim sick pay under this part of this claim.

Future losses

There may be ongoing financial losses and expenses for example an ongoing loss of earnings, a reduced pension or ongoing care/help with household activities. There are complex actuarial calculations which assess the present day value of a future loss.  There may be a disadvantage on the labour market if there are some jobs that can no longer be done.