Understanding Insurance Claims and Personal Injury
May 11, 2015 | Insurance
It can be difficult to comprehend that a dollar amount could be attached to pain and suffering or that the loss of a loved one could somehow be reimbursed. As delicate a situation is as this, compensation is sought in an effort to recover damages. For example, a person who is liable for an accident may need to cover medical expenses, pain and suffering, time lost from work, other lost income, permanent physical disability, disfigurement, emotional damages, loss of family and other losses. This compensation amount, or initial claim amount, is determined using a formula. Insurance companies must assess how much a claim is worth. The total amount of compensation is usually influenced by additional factors as well.
Insurance companies take into account several considerations to arrive at their compensation amount. The one who has been harmed or who is grieving is often asked several questions surrounding the incident of the case at hand. For the grieving plaintiff, they might be asked how much time they spent with their loved one before their death. This is a common occurrence in many personal injury cases. Our Denver personal injury lawyer can help clients in these matters. A dollar amount has to be determined for a claim. Some figures are easy to compute as they relate to a specified figure, such as loss of income. However, an amount has to be determined as to pain and suffering or other losses. There are a few ways insurance companies determine this.
Insurance companies use a damages formula to come up with the claim amount. In regards to emotional damages, pain and suffering, and permanent disability amongst other damages where a medical injury is related, an adjuster will take the total amount of medical expenses and multiply this amount with a sum of between one-and-a-half and five. Injuries that are more serious or permanent are multiplied with a higher amount, which is determined by the adjuster. Lost income is then added to this amount. The final number becomes the initial settlement amount should a settlement occur. Other factors can change this amount, but this is the basis for the initial claim amount.
Other factors in a case can change this number. In addition, if an injury is obvious to others, the claim amount may increase as well. It is important to note that there are policy limits, and a plaintiff will not be awarded an amount that is higher than this. For example, if a defendant has $30,000 in liability insurance, that is the maximum amount that will be paid for damages and legal fees by the insurance company. Give us a call to discover how our Denver personal injury lawyer can help you with your case.