Fatal Accident Compensation – Calculate Future Awards (Part 2)
In Part 1 fatal accident solicitors considered the general complex issues of how calculating future awards for lump sum compensation for a fatal accident or fatal disease can be complex. Needless to say, once again, as fatal accident solicitors specialising in this area in addition to serious life changing injury claims, the future calculation for compensation leaves the victims, in our view under compensated.
Why? It is all down to how the large discount is applied to future lump sum compensation awards for a fatal accident or serious life changing injuries. The discount applied applies on the award of the compensation so as not to ‘over compensate’ the dependents or victim of a life changing injury claim. Thus to use an similar example, if the dependents or personal injury victim sustaining serious injury claim is valued at say £100,000 over a period of 10 years, if that amount was put into stocks and shares over a period of 10 years, there is a chance that the investment will grow over time and thus the net value would be more than the £100,000. This is unfair and has been attacked as the returns may not be significant or at all as there is a chance there could be heavy losses.
‘Victims and families whose loved one have been killed in a fatal accident or sustained a serious life changing injury have been under compensated for years…’
[Author Ronnie Hutcheon, Principal Solicitor of R James Hutcheon Solicitors]
Thus the dependents compensation for a fatal accident or the victim of a serious life changing injury claim are being under-compensated and have been over many years. Further the Conservative Government has also since April 2013 not only reduced solicitor costs if they win a compensation claim for fatal accident or injury but now solicitors are forced to take up to 25% of the victim’s compensation award. Thus to say that the aim of compensation is to put the claimant victim in the same financial position but for the death or accident is a misnomer.
Uee of the Ogden Table To Compensate Fatal Accident Claimants
The Ogden Tables are used by fatal accident solicitor and personal injury solicitor who specialise in life changing injuries where the future awards of compensation have to be considered. Here we will discuss only fatal accident compensation claims due to the recent important case of Knauer v MOJ by the Supreme Court in 2016 increased compenstion following the unalwful killing of a person in an accident by just using the Ogden Tables in the way they were intended. Had the Courts used the Tables correctly it would have stopped thousands of bereaved families whose fatal accident compensation claims were settled by their Solicitor or the Courts over many years.
Posted: April 20, 2016 at 8:39 pm