"Pain and Suffering" defined:
How does an insurance company calculate pain and suffering damages?
There is no hard and fast rule for how an insurance company must calculate pain and suffering. Many plaintiffs’ attorneys were trained to use one of two methods for calculating pain and suffering.
Method #1: multiply the plaintiff's actual damages (medical bills and lost wages) by a certain number, generally between 1 and 5 (depending on the severity of the injury). For example, if a plaintiff incurs $3,000 in medical bills related to a broken arm, he might multiply that by three, and conclude that $9,000 represents a reasonable amount for pain and suffering.
Method #2: Alternatively, many plaintiffs’ attorneys use a per diem (Latin for "per day") approach. Under this method, a certain amount -- perhaps $100.00 -- is assigned to every day from the day of the accident until the plaintiff reached maximum recovery.
Insurance companies are under no obligation to consider in calculating pain and suffering. Many companies use programs to determine what should be allotted for pain and suffering.
Proving Pain and Suffering
Damages for pain and suffering are certainly recoverable, but how can they be proven? Proof of this type of injury may take many forms, and the more evidence you have to support your claim, the better your chance will be of recovering an amount you find satisfactory.
The extent of your injury and accompanying pain and suffering can be evidenced through documentation such as photographs and personal journals that record the plaintiff’s physical and emotional feelings. Documentation from friends and family can provide additional evidence of the way the particular injury has negatively impacted the plaintiff’s life. Proof of treatment by a mental health professional is also helpful, and is necessary where the plaintiff is claiming injuries such as increased anxiety, insomnia, or depression.
How Do You Know What's Fair?
If the insurance company makes a settlement offer that includes compensation for pain and suffering, how do you know if it’s a reasonable offer? A reasonable approach is to use either the multiplier method or the per diem method to get a ballpark figure (as discussed above).
Then consider whether there were additional circumstances that might increase or decrease that amount. For instance, if your injury left you with a permanent scar on your face, it may be reasonable to increase the amount of pain and suffering you deem fair. On the other hand, a minor bump to the head that healed quickly probably is not worth all that much. Keep these factors in mind when considering how the insurance company has valued your pain and suffering, and when deciding whether the insurance company’s offer is reasonable and fair.
For more information on how to protect yourself against Insurance Companies, please call a Kirkland Personal Injury Attorney.
Weitz Law Firm, PLLC
520 Kirkland Way, Ste 103