Multiplicand
The Multiplicand
This is valuing the dependency following a fatal accident, the multiplicand, which is an arithmetical exercise. There are 3 ways to calculate this figure;
1 Add each item of expenditure by the deceased on the dependants to provide a net figure;
2 Assess the deceased net income and deduct his estimated expenditure on himself. Do not forget to add into the calculation fringe benefits such as a company car or free accommodation provided by his employers;
3 To deduct a percentage from the deceased income to represent what he would exclusively spend on himself. The court’s are favouring this method.
In a husband and wife situation 1/3 is the usual deduction. The rationale was that one-third would be for the benefit of each and the remaining third would be for their joint benefit. Clothing is an example of a several benefit, rent an example of joint benefit. No deduction is made for a joint benefit because one cannot drive half a car! Where there are children the deduction is reduced to 25% .
However in one fatal accident case, the conventional percentage may be unsuitable if the wife had been earning a considerable sum herself before her husband’s death.
The fact that a deceased widow would have given up work to start a family but for the deceased death, will not increase her dependency on the deceased from the date when she would have given up work.
Other losses in a fatal accident claim, include a loss of pension, gratuitous services and fringe benefits, amounts others. They are recoverable provided that there was a realistic expectation of the benefit, regardless of whether or not it was previously enjoyed. Thus a separated spouse must show a significant prospect of reconciliation; if the deceased was not working at the time of death, he would have returned to work in the future.
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