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The aim of personal injury compensation is to make up for the harm that you have suffered following an accident that was not your fault, to the fullest extent that this can be achieved.  

This means that when calculating personal injury compensation, regard needs to be had to everything you have had to endure as a result of the injuries you have sustained and to any continuing challenges you face as you try to move forward.

Some types of harm are easy to assess and put a figure on, like financial losses stemming from your inability to work while undergoing rehabilitation.  However, others can be more difficult to quantify, including how much you should receive for your pain and suffering and for any consequent reduction in your quality or enjoyment of life.

It is a complex area of law and one which our resident personal injury experts, Abid Hussain and Anna Rushton, attempt to explain as simply as possible in this PI focused blog. 

Personal Injury Compensation – The Basics

When assessing a claim for personal injury compensation, consideration will need to be given separately to what are known as pecuniary and non-pecuniary losses.

Pecuniary losses are monetary losses which can usually be predicted with a high degree of accuracy by using straightforward mathematical calculations, albeit possibly undertaken with the help of an experienced accountant. These are referred to as ‘special damages’. 

Non-pecuniary losses have no financial basis and must therefore be calculated using your lawyer’s knowledge of what an injury is worth, based on their experience, and on guidance issued by the UK’s Judicial Council. These are referred to as ‘general damages’.

Special Damages

Within the category of special damages, you can make a claim for a variety of monetary losses that have been incurred as a result of the injuries you have sustained, including:

• loss of past and future earnings; 
• loss of a benefits package offered as part of your job; and
• loss or reduction in pension entitlement due to decreased contributions.

You can also claim for any additional expenses you may have to incur, such as:

• medical costs, where any treatment you require is not readily available on the NHS or is easier and quicker to access privately; 
• rehabilitation therapies, including physiotherapy, occupational therapy and counselling; 
• mobility aids and prosthetics;
• home or vehicle adaptions;
• employment of a home help, gardener or general handyman; and 
• residential care home fees or the provision of full or part time at-home care services. 

Where you have already incurred costs, these can also usually be recovered – including costs incurred travelling to and from medical appointments, injury-related prescription charges and the cost of replacing property damaged in the accident, such as clothing, electrical equipment or even a vehicle. 

Where money has already been expended, the amount claimed will be based on the amount spent and with this is mind it is always helpful if relevant receipts can be retained.

For money that you expect to have to spend in the future, or for losses you anticipate you will incur, it will be necessary for a range of forecasting calculations to be undertaken.  This is particularly so when it comes to claims for the loss of future earnings or for the cost of meeting future care needs, which can often be very substantial.

In complex and high value cases, it will usually be necessary for your lawyer to work alongside an accountant in order to help properly assess your special damages claim.

General Damages

Within the category of general damages, you can make a claim for:  

• your physical pain and suffering;
• mental anguish and psychological harm;
• temporary physical impairment;
• permanent disability or disfigurement;
• loss of pleasure in everyday life and in previously treasured hobbies; and
• loss of companionship due to injury-related difficulties you now have in forming or sustaining personal relationships. 

The amount you receive will depend on your own unique circumstances.  However, the starting point in assessing this element of your claim will be the Judicial College Guidelines for the Assessment of General Damages in Personal Injury Cases, which indicates the broad range of awards that might be appropriate and which is regularly updated to reflect the amounts being awarded by the court and to take account of any rises in inflation.

By way of example, and to give you an idea of the sort of general damages you might receive for some of the most commonly sustained injuries, here is a small extract from the guidelines which apply to claims made in 2020.

It is important to remember that the figures suggested by the Judicial College are just a guide and it may well be possible that the circumstances of your case justify a general damages award being made which is in excess of the guideline figures provided. 

What if death occurs as a result of an accident?

Compensation for fatal accidents is calculated in a slightly different way.  We have a dedicated webpage for fatal accident claims which should tell you everything that you need to know.  We also have dedicated pages for injuries sustained as a result of an industrial accident or following mistakes made by NHS hospitals, private hospitals, GPs or dentists.

Want to find out more?

For further information on making a personal injury claim, or for help in assessing how much an existing claim is worth, why not give Abid or Anna a call now on 0800 1956412.  

We offer a free first interview and in most circumstances can agree to take your case on under a no win, no fee agreement so that you do not have to worry about paying legal costs unless your claim is successful.