When people ask how compensation is calculated after an injury, they usually expect a single figure. But personal injury compensation is made up of two different parts, namely general damages and special damages. Together, these reflect both the personal impact of an injury and the financial consequences that follow.
What are general damages?
General damages compensate for pain, suffering and loss of amenity, more commonly known as PSLA. This includes physical pain and emotional distress. It also includes the impact an injury has on everyday life, like difficulty sleeping or reduced independence. It also covers psychological injuries like anxiety or post-traumatic stress where these are linked to the accident.
Because these losses cannot be measured in financial terms, courts rely on medical evidence. Independent medical reports are central to the assessment. These reports outline the nature of the injury, its severity, how it affects daily functioning and the likely course of recovery.
What are special damages?
Special damages cover the financial impact of an injury and are based on losses that can be proven. This includes both past losses already incurred and future losses that are likely to arise. Typical examples include lost earnings, medical and rehabilitation costs, travel expenses and the cost of care or support.
Past losses are usually calculated using documents like payslips and receipts. Future losses need a forward-looking approach, especially where an injury affects someone’s ability to work or creates ongoing care/treatment needs. These losses are calculated using actuarial methods, including the Ogden Tables, which dictate how long losses are likely to continue.
The personal injury discount rate also influences future losses. This rate affects how future losses are converted into a lump sum and can change the overall value of a claim. In more serious cases, special damages can include long-term care costs or regular payments instead of a single lump sum.
Because special damages are evidence-driven, missing or undervaluing a loss can substantially reduce compensation. Careful preparation and expert input are therefore crucial.
How is total compensation calculated?
General damages and special damages together form the total value of a claim. Focusing only on pain and suffering can overlook serious financial losses. At the same time, concentrating solely on expenses can fail to reflect the real impact an injury has had on quality of life.
In many cases, one element of compensation can be agreed upon while another remains disputed, especially where future losses are involved. A balanced approach that addresses both personal and financial consequences is key to achieving fair compensation. This is why many people choose to seek advice from experienced lawyers in Liverpool.
Want advice on the true value of your injury claim?
If you are looking for guidance on how compensation is calculated after an injury, you are in the right place. A proper assessment of both general and special damages is key to understanding the true value of a claim. Contact Stallard Solicitors to discuss your situation or ask any questions.
