Most people have heard about somebody winning a large insurance settlement after being injured. Often times, the term pain and suffering is tossed around quite a bit. The real question that many people have is How Do Insurance Adjusters Value Pain and Suffering? There are no set standards for such calculations. However, there are a few ways in which this can be calculated.
The multiplier method is often used by attorneys in court. What this does is takes the cost for medical treatment stemming from an accident and multiplies that number by a factor of one or five. The higher numbers in this multiplier method will have a great deal to do with the severity of the injury. For example, if someone had $10,000 in medical bills following an accident they were injured in, and the injuries were severe enough, the award for pain-and-suffering could be as high as $50,000.
Another option is to use a per diem or a per day scale. Depending on the severity of the accident and the injury, a number, such as perhaps $200 per day, is ascribed from the day the accident happened to the day in which the person’s medical care ended pursuant to their injuries.
It is important to understand, however, that insurance companies don’t have to accept this type of calculation. Many times they do, but as there is no concrete equation or calculation that is mandated by the insurance industry, or the courts, to establish pain-and-suffering. A great deal of it relies on either the judgment of the lawyers representing the insurance company, or the courts.
However, these sorts of calculations, or a set number made ahead of time by an attorney representing the injured party, can be proven. This can be proven by interviewing people that know the injured party, documentation from mental health providers or even journals written by the injured party themselves about their emotions, their physical condition and how the injury and the accident has affected them.
When calculating pain and suffering, there’s a lot of guesswork and a lot of unknowns. Nothing is a sure thing when it comes to these issues. However, whether a person uses a multiplier method, or they go to great lengths to prove to negotiating attorneys or the courts of a certain level of pain-and-suffering, there are ways a dollar amount can be assessed.