What is My Claim Worth? Personal Injury Claims and Damages Explained

After suffering an injury in an accident, your first thoughts are likely to be about recovery and getting back to work. However, if your injuries were caused by another individual’s negligence, a personal injury claim needs to be considered. If medical bills are mounting up, your earnings have taken a hit, and you are struggling to do all the things you normally do around the house, why should you have to suffer because of someone else’s negligence?

You should be able to file a personal injury claim and recover these losses, but how much is your claim worth?

Many accident victims are contacted by the insurance company of the at-fault party and offered a settlement. Some sign without checking whether they are entitled to more and often they are.

How do you know if the offer is fair? How much is your personal injury claim worth?

An experienced Alberta personal injury lawyer can help you calculate how much is due based on the precise circumstances of your accident and injuries. Here’s what you need to know about calculating the value of your claim so that you don’t have to settle for less than you deserve.

How is my injury compensation determined?

If you’re looking for a formula to calculate the value of your personal injury claim, you will be disappointed. No such formula exists in Alberta and there are no legislative tables to refer to like in some other jurisdictions.

Instead, injury compensation in Alberta is determined by considering the severity of your injuries and the extent to which they have affected you and your life.

Compensation is awarded based on how severe the injuries have been (including the associated pain and suffering), as well as how long you have had to endure these injuries.

Injuries from which people make a full recovery receive lower compensation than permanent ones.

However, individual circumstances vary and a minor injury to one person can have much greater consequences for someone else. A broken leg is a serious enough injury for anyone but if you are an up-and-coming professional sportsman, it may be catastrophic and career-ending. While the medical expenses may not change between the two cases, the value of the claim can vary significantly when lost earnings are taken into account.

What other factors are considered when calculating the value of a lawsuit?

One of the ways that physical injuries are assessed is by consideration of the maximum medical improvement (MMI).

This is the term used by medical professionals when you have recovered as much as you possibly can from an injury. Medical opinion provides key evidence in such cases and will help determine the amount you can claim in damages.

As well as physical injuries, the mental effects of your accident must be considered to determine accurate compensation. Psychological injuries may include depression, anxiety, insomnia, etc.

With such complexity, it can be difficult to handle a personal injury claim on your own, especially when you are trying to recover from your injuries.

What can you claim?

Alberta personal injury law aims to award fair compensation or “damages” that can return victims to a condition as close as possible to how they were before their injuries.

Once you discuss your situation with a personal injury lawyer and the relevant medical/police reports and other evidence has been examined, your lawyer will explain what you can claim.

Heads of damage

In a personal injury claim, the heads of damage are the elements that the court may award a monetary amount for. In Alberta, these are as follows:

General damages (pain and suffering)

Also known as non-pecuniary or general damages. This head of damage is intended to compensate a plaintiff for the pain and suffering caused in the past, present, and any pain and suffering the plaintiff may encounter in the future.  It is important to note that general damages can be capped. In Alberta, the 2021 cap for pain and suffering for minor soft tissue injuries is $5,365.

Special damages 

Special damages compensate a plaintiff for monetary expenses incurred because of an injury. These types of damages are tangible, quantifiable, and proven, using invoices, receipts, medical reports. They include emergency medical care, the costs of hospitalization, medication costs or out of pocket physiotherapy, chiropractic, or massage therapy bills.

Special damages only include past and present losses. Any costs incurred in the future (such as phytotherapy or psychological care bills) fall under the “future cost of care” head of damages.

Future cost of care

There is a possibility that a plaintiff may require future care and treatment for an extended period of time or potentially for the rest of their life.  Future cost of care is a determination of the amount of money that is required for such care. It can include amounts to cover items such as ongoing physiotherapy treatment, medication costs and caregiver assistance.

Loss of income

This is compensation for the loss of income that a plaintiff incurred from the date of the accident until the date of settlement or trial. It can include loss of income due to missed days at work or time off for treatments and surgery.  Assessing loss of income can be a complex endeavor and often income from other sources following an accident from a disability plan, Section B or employment insurance are factored into the calculation of loss of income.

Future loss of income or earning capacity

If you are unable to return to your employment or suffered a loss of opportunity to earn future income because of your injuries, you can be compensated under this head of damage. Future loss of income is the difference between what someone was earning before an accident and what they can earn now. In determining the amount of compensation to which you are entitled, your earning capacity over your expected employment will need to be evaluated. It is often necessary to retain an expert to provide analysis and opinion to support your claim.

Loss of Housekeeping (past and future)

A plaintiff can claim damages under this head of damage if their injuries sustained in an accident impacts their ability to undertake normal housekeeping tasks such as cleaning, cooking, yard work or laundry. The value of this claim is the replacement cost of the tasks or services the plaintiff can no longer perform.

Trying to handle the claim alone may mean that you have to settle for less. Book a free consultation with a lawyer at Vogel LLP in Calgary. We will be happy to answer your questions and advise you on the next steps.