Calculate Car Accident Compensation
How To Calculate Car Accident Compensation In NSW
There are many factors involved in claiming compensation, the most important being calculating the appropriate amount of compensation that you are entitled to. For this reason, we have put together a guide to calculate your compensation claim as accurately as possible.
Unfortunately, car accidents occur every day on NSW roads causing injury and loss to everyday people whose lives are permanently affected after the incident. For those who have been victim to injury on NSW roads, there are steps to take in order to claim compensation against the responsible party.
What Is The Purpose Of Car Accident Compensation?
The purpose of car accident compensation is to properly accommodate the injured party with the monetary loss they were burdened with due to the negligence of another driver. Each and every case in different with the differing of types and severities of injuries that are suffered from a car accident. What it ultimately comes down to is the individual damages to the victim. Luckily for NSW drivers, all vehicle owners are required to hold third party insurance, so if the injured party claims compensation, the payments are covered by the responsible party’s insurance provider.
What Types Of Compensation Are You Entitled To?
If you are injured in a road accident in NSW you may be eligible for compensation for the following:
- Loss of income
- Previous and ongoing medical expenses due to injury
- Ongoing pain and suffering causing a loss of enjoyment with your life
- Nurse or Carer’s fees
Loss Of Income
While you can claim compensation for the loss of income, the amount is restricted under the Motor Accident Compensation Act 1999. This act limits the payout amount, stating that if your gross income exceeds three times (3x) the average weekly earnings of New South Wales workers in the most recent quarter, then the amount is not counted. As well, if the compensation payment is paid as a lump sum, there is a 5% discount given to the other party.
Previous & Ongoing Medical Expenses
If you are injured, you can be financially accommodated by the negligent party for medical expenses that began due to the accident. All calculated future medical expenses must be discounted 5% in co-operation with the Motor Accident Compensation Act 1999.
If your injuries caused to receive government benefits in order to pay for medical costs, these benefits are to be refunded through the compensation amount. The same goes for medical expenses that were covered by your own private insurance provider.
Ongoing Pain And Suffering
In order to receive compensation for pain and suffering, you must meet a certain pre-existing injury threshold. This threshold is determined by what percentage of your body has been impaired due to the accident. In order to be eligible, your injuries have to permanently impair at least 15% of your body, according to medical professionals who are strictly guided in their assessment.
While this precaution exists to stop people from exploiting the system, it is unfortunate as often times, debilitating injuries can be dismissed for compensation claims of ongoing pain and suffering. Circumstances such as the loss of fingers and toes, as well as permanent skin damage, often times aren’t enough for these claims.
The Motor Accident Compensation Act of 1999 which we mentioned before, as well places restrictions on these claims. The act has put a maximum payout of $350,000 on pain and suffering claims.
Nurse or Carer’s fees
If you require special care at home after the accident due to your injuries, whether it be from a friend or nurse, you can be eligible for compensation whether you paid the carer or not. Like other factors, the Motor Accident Compensation Act 1999 has restrictions to these payouts. You first of all, have to prove that the care was needed for longer than 6 hours a week for longer than 6 months.
What If The Injury Was Both Party’s Fault?
The amount that you will be rewarded depends on where the fault lies between the two parties. The defending party may argue your claim by saying that there was contributory negligence meaning that your own negligence caused the accident as well as theirs. In a case such as this, the responsibility of the injury will be split between the parties and the amount will be proportioned appropriately.
If you were at fault, then the compensation you receive will be less if it were all the other parties fault. A percentage of fault will be determined based on the following:
- Whether you were speeding
- Whether you were intoxicated
- Whether you knowingly got in the car with an intoxicated driver
- Whether you were wearing a seatbelt
How Will You Be Paid If Your Claim Is Successful?
Compensation claims are usually paid to the successful party as a lump sum payment. Sometimes if a compensation claim is miscalculated, these lump sum payments may not be enough to cover the cost of injury, leaving the victim paying their own costs. For this reason it is recommend you seek professional legal advice when calculating a suitable compensation amount to make sure your injuries are properly paid for, never leaving you out of pocket.