Some of the losses for which you may seek compensation when you file a claim are known as economic losses. These are losses that have exact dollar values.
For example, you may be eligible to receive compensation for the medical care your injuries require. Determining how much compensation you deserve in these circumstances merely involves adding up your medical bills and related expenses. If you need ongoing care, it may also involve estimating the potential cost of future medical treatment.
However, your injuries may also cause you to experience pain and suffering. This is a loss without a clear monetary value. Regardless, it’s a loss for which you might also seek compensation. How you will go about assigning a value to it can depend on which method the insurance company or your lawyer uses.
Methods for Assigning a Value to Pain and Suffering in a Massachusetts Personal Injury Case
There are various methods attorneys, insurance claims adjusters, and other such professionals use when assigning a value to pain and suffering. The following are two of the most common:
The Multiplier Method
The multiplier method of assigning a dollar value to pain and suffering begins by assigning it a numerical value between 1 and 5. The greater your pain, the greater the value.
Then, you would add up all your economic losses. Along with medical bills, this may include other financial losses resulting from your injuries or accident.
For instance, perhaps your injuries render it difficult or impossible for you to return to work, at least during your recovery. If so, you may not be earning an income for a period of time. You can thus include lost wages in your economic losses when negotiating for a settlement or asking for damages.
The multiplier method involves multiplying the sum of your economic losses by the numerical value assigned to your pain and suffering. For example, maybe the total of your economic losses for which you may receive compensation is $30,000. Perhaps the numerical value of your pain and suffering is 3. If so, the value of your pain and suffering would be $90,000.