Evaluation of Related Damages and Losses

An insurance company will initially look at what they are compensating you for. There could be a number of damages that validate compensation, such as hospital bills, medical expenses, lost wages, prolonged physical therapy, permanent handicap or disability, loss of companionship, loss of ability to perform work duties, reduced quality of life, emotional distress, physical pain, damaged property, and any other aspect of life that was negatively affected as a result of the injury. Once an insurance company makes this assessment, the next step in the standard claim process is generally the insurance company’s losses and damages formula.

Losses and Damages Formulas

The damages formula is exactly what it sounds like; it formulates a victim’s losses and damages into a numeric value. Insurance companies use the same damage formula to attain what it believes to be a fair and reasonable dollar value that is equivalent to the total amount of damages suffered by a claimant. The complicated part is assigning an appropriate dollar value for pain and suffering, emotional distress, mental anguish, and other non-economic damages. See our article, “The Difference Between Economic and Non-Economic Damages”, to learn more about such damages.

An Example of How a Formula Might Work

Although it differs from carrier to carrier, the basic process of using the damages formula involves calculating the total dollar amounts for hospital and medical expenses. This is the principle figure the insurance company uses to determine the dollar amount assigned to pain and suffering. For minor injuries, the insurance adjuster may multiply the principle number by a predesignated lower numerical value, such as 1.5 or 2.

However, the more serious the injury, the higher number, which can be as high as 5. If the injuries result in long-lasting or permanent implications, such as an amputation, medical condition, or disability, the number may go all the way up to 10. Once this value is calculated, the insurance company adds on any additional compensation necessary for losses, such as lost income from missing work, and similar economic losses.

It Takes More Than a Formula

Although the insurance company damages formula is complete at this stage, their final figure is not the amount of compensation that will be recovered. It is just the foundation used by the insurance companies and personal injury attorneys during negotiations. The number may increase if the accident attorney can prove more damages, or the extensiveness of damages. Also during negotiations, the percentage of fault among each party is assessed and applied to the deciding factors of the case. This is a central reason why you need a seasoned Indianapolis personal injury lawyer to represent your best interests after being injured in an accident caused by the negligence of another.

If you wish to settle your personal injury claim with an insurance company, you do not have to ‘prove’ fault in order to obtain compensation for your losses and damages. Continue reading to learn what you need to know about personal injury claims and settlements, including how to get started and who to trust with your case.

Indianapolis Personal Injury Lawyers
317-881-2700

Who’s At Fault?

One of the most common reactions involved parties tend to have after an accident is to assign or question fault. Who or what is to blame for the accident? Who is responsible for the damages and losses suffered by the victims? How do I prove that they are to blame? How do I prove I am not to blame for the incident? These are all common, and quite normal, questions to have regarding personal injury liability.

You May Not Need to “Prove” Fault

Proving fault is not an essential part of the personal injury claims process when you wish to settle out of court. First you need liability insurance coverage and then some evidence of fault. Virtually all cars, homes, businesses, and other types of real estate, are covered by liability insurance policies. That means that most accidents end up involving the involved parties and the insurance adjusters assigned to the case.

Basically, the process of negotiating a settlement with an insurance company does not require you to provide legal ‘proof’ that the opposing party was negligent, and that the negligence caused the accident. All you really need is a reasonable argument demonstrating such facts, although the more facts and evidence you have in your possession, the stronger the argument becomes. In cases of defective products, you don’t even have to go that far due to strict liability laws.

Dealing With the Insurance Adjuster

In order to settle a claim with an insurance company after being injured in an accident, most often all you have to do is give the insurance adjuster a clear and concise explanation of what happened along with whatever evidence exists at that time. Within this explanation, include why the wrongdoer was negligent, and how their negligence caused the accident and subsequent injuries.

Once the insurance adjuster accepts your explanation and feels confident that you fully understand how the basic rules of liability coverage applies to your accident, the insurance company may pay you for medical bills, lost wages, and pain and suffering. But the most fragile factor is not being approved to receive compensation; instead, your claim focus will quickly transition from being paid to how much you will be paid.

When Proof of Fault May Be Required

If a claim goes to court, there will be a need to prove negligence with evidence and facts. In order to prove negligence, the claimant must show evidence of 4 facts:

❶ The negligent party had a duty of care (legal responsibility) to prevent injuries to the victim;

❷ The negligent party failed to uphold their duty of care;

❸ The negligent party’s failure to uphold their duty of care was a proximate cause of the accident;

❹ Your damages and losses are a proximate result of the accident.

Receiving a Low Settlement Offer

If you receive a low settlement offer from the liability insurance company, you need a seasoned personal injury attorney to fight for your rights to the full and fair compensation you deserve after being injured in an accident that was not your fault. To get started, simply choose a licensed and reputable Indianapolis personal injury law firm, and schedule a time to sit down and discuss your case in detail. They will give you advice on the best course of action to take for your particular claim goals.

Indianapolis Personal Injury Law Firm

Indianapolis Personal Injury Lawyers 317-881-2700

Call Craven, Hoover, and Blazek P.C. at 317-881-2700 for help with your Indiana personal injury claim. Our esteemed and seasoned attorneys are ready, willing and able to help injured victims recover the full and fair compensation they deserve. We offer free initial consultations and never collect lawyer fees unless we prevail for you. Contact us to get started in your financial recovery, today.

Craven, Hoover, & Blazek P.C.

Tag Archives: Indianapolis Personal Injury advice

How Do Insurance Companies Estimate Compensation for Accident Victims?

Continue reading to learn some basics about how insurance companies might estimate the amount of compensation they will pay out for an accident claim.