Bodily injury, used interchangeably with personal injury, is an injury that has caused physical or mental pain and suffering to an individual. How to calculate bodily injury settlements will vary by regions.
1. Determine the fault factor of the accident or incident. It is important to clearly identify the person or thing that initiated the factors that caused the injury.
- If another party was at fault, the settlement will be based on the type of premium and amount of insurance coverage the individuals or business have allotted on their behalf.
- If you are at fault, the settlement amount will be based on the same principal, but an individual maybe able to claim a PIP (personal injury paid under your personal injury policy coverage) settlement.
2. Factors that cause a bodily injury that can result in a settlement can include:
- Highway accidents due to road conditions.
- Road accidents involving the carelessness of a driver.
- Slip and fall incidents.
- Work-related incidents.
- Injuries received due to a defective product.
- Injuries received while on personal or private property.
- Assault and physical attacks.
3. Identify the type of injury received by giving specific details by outlining if the injuries will have an impact on:
- Present or future life enjoyment.
- Present or future ability to be gainfully employed.
- Replacement of property and material loss.
- Mental defect (is it considered temporary or permanent).
- Age of the injured party.
- Loss of income.
- Emotional defect such as stress, anxiety or depression.
4. Calculate the settlement amount to be disbursed for injuries. Insurance companies use several formulas to calculate settlement amounts to be paid to an injured party that is not at fault or caused the accident.
1) The formula generally used for injuries that are not too severe is:
Special damages x 1.5 + income that was, or will be, lost due to injury.
2) In the event of severe injuries, the formula generally used is:
Special damages x 5.0 + income that was, or will be, lost due to injury.
3) Compensation for extreme personal injuries will be calculated using:
Special damages x 10.0 + income that was, or will be, lost due to injury.
5. Use a different formula if your actions attributed to the cause of your injuries.
- An example of an adjusted compensation settlement is if the injured party responsibility factor equals 20 percent and the settlement amount normally given is $4,000.
- The formula = $4,000 (amount generally given) � 20% (shared factor) = $4,000 � 20% = $800.
- The new amount received by the injured party is $4,000 - $800 = $3,200.
6. Try using an online calculator to calculate bodily injury settlements. The calculator gives an estimate of the claim amount you may receive in a settlement based on various factors.
Remember the settlement amount received will be based on attributing conditions, situations and circumstances viewed on a case-by-case basis.
Never enter into a contract or settlement without consulting an attorney or understanding the language of the terms of the agreement.