Loss of Earnings Due to an Injury, Can I Claim?

Are you one of those people who suffered injuries in an accident? Did you take time off work to heal and recover from your personal injury? Are you worried about the impact it had on your income or has it already caused financial disruption to your budgeting?

You should consider a loss of earnings claim to recompense you for the impact from a personal injury. If you have been thinking about and need further information on such a compensation claim, then read our handy guide below.

This helpful loss of earnings guide is to help you understand whether you can reclaim any income you have lost after the event of an accident. If you prefer, use our loss of earnings claim form to submit details and we can call you to discuss your personal circumstances.

Loss of Earnings Guide

When you make a claim for personal injury, it is separated into two distinct sections, general damages and special damages.

General damages refer to the claim for the actual pain and suffering from injuries following an accident. Within this area, there are other components that are added such as psychological injury and loss of amenity.

The special damages part is for the various monetary costs that a claimant endures because of the accident. This includes loss of earnings. A definition for loss of earning is given as a situation in which a victim ends up with less money or income than expected as a direct result of an unexpected incident. Very much like a taxi driver breaking his leg in a car accident, hence losing his source of income as he is unable to work.

Other common expenses you can claim under the special damages claim area are:

To recover the whole sum that you have lost, it is important that each item you claim under special damages is backed with evidence. Evidence can be in the form of payslips to show your earnings and overtime, receipts for transport fares and medicine, and invoices for any treatment carried out.

Proof of Earnings For Injury Claim

If you are ready to begin your loss of earnings claim, the first thing that is expected to support your file is evidence of income. For self-employed people see our section below. Otherwise, if you are employed, then you need to provide six months wage-slips. The payslips must show your income for the six months before you had an accident. This information will then allow a truer account of what you were earning.

Did you regularly complete overtime at your workplace before you were injured? If the answer is ‘yes’, then you can also claim for lost overtime income. The overtime component need to be clarified where you may have to show that the extra work was available to you had you been able to work. Our expert solicitors can advise on this section if you require further clarification.

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Calculating the Loss of Earnings

For loss of earnings calculation, your net average monthly wage is usually considered by the court for three months before you sustained injuries. Bear in mind that not all earnings are straightforward, therefore some loss of income calculations is determined from a six months or more income period to get a more accurate figure.

Any tax and national insurance contributions is not included in the total. Where some individuals have multiple earnings, it can be combined and calculated to show the average amount. This figure is then multiplied by the length of your time off work to determine your loss of earnings claim.

Alternatively, where payslips are not available it is possible to use bank statements. Do speak to our personal injury solicitors if this is the case to establish the best way forward.

For those claimants that have varying income earned every month, the claim becomes more complex. The calculation is treated on an individual basis with application of several standard factors to calculate a fair compensation.

Special damages are still subject to having a medical report that supports your injury claim and proves that you were unable to work. Losses are duly expected to be reduced where possible and wholly exaggerated costs will not be accepted.

Loss of Earnings Claims for Self Employed

Were you self-employed at the time of your accident? Loss of earnings for self-employed claimants, or using the actual term, loss of profit, is difficult to substantiate. It is highly recommended that your accountant is instructed to draw up an account to demonstrate the loss of income (profit) during your absence from work or business.

If possible, at the early stage of your absence from business, keep track of all the commitments that you were unable to honour, including invoices, sale leads, contracts, meetings and appointments. The court may ask for the accountant to provide specifics of business accounts for at least three years before you sustained injuries. It is usually collated with other professional records, i.e. tax returns, to accurately assess the disposable loss of earnings you have accrued through the business.

Long Term Claims and Loss of Pension

Some accidents can cause injuries to render you unable to work for a long time. If this happens to exceed a particular period, then it is possible to claim for loss of pension as well.

In serious injury cases, your future capacity to work is evaluated using the official medical legal reports via Medco to consider the effect the accident has had on you. Consequently, it is likely that an award for future loss of earning is deliberated. This is intended to compensate for the long term detriment effect an injury may have on your ability to earn a living.

A Schedule of Loss is a list that details the special damages that you are claiming for and is sent to the third party’s insurer or lawyer. Attached to the file would be the evidence that you have complied to support your loss of earnings claim.

A lot of personal injury compensation claims that we complete, usually have the special damages element added. The loss of earnings element makes up the majority of this part of the claims.

You too can claim for loss of earnings which was a direct result of an accident. With the supporting evidence of income and the medical proof of your inability to work because of the personal injuries you sustained, we can help to recover the losses you endured. With no fees to pay under our No Win No Fee arrangements, it is a win win situation for you. Discuss your claim with our experienced solicitors and regain what you have lost.

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