WHAT IS LOSS OF EARNING CAPACITY?
If you’ve become a victim of an accident, it’s possible that you won’t be able to return to work for a long period of time. You may be eligible to recover multiple types of accident benefits including compensation for loss of earning. In fact, when calculating reimbursement, you should not only consider the income that you’ve lost up to that point, but also include any future lost income.
Calculating Lost Earning Capacity
After a personal injury, lost earning capacity is calculated through a complicated method, which includes:
- In-depth analysis of the victim’s work profile, including skills, abilities, talents, and experience
- Using current wage rates to determine the amount of money lost in the future
- Seeking the assistance of a medical professional to determine the extent of injury and how it would impact future performance
How Lost Earning Capacity Differs From Lost Income
- Loss of Income: In the aftermath of a personal injury, people make a claim to recover income that was lost due to the mishap. Loss of income is one of the primary factors on which personal injury cases are based.
- Loss of Earning Capacity: In personal injury cases, loss of earning capacity goes a step further. Accidents reduce the ability to earn income in the future. Loss of earning capacity is different from loss of income. The compensation is determined by analyzing the victim’s earning potential before and after the accident.
Proving Loss of Earning Capacity
Seeking the assistance of a personal injury attorney helps you get the compensation you need to recover from your injuries. Your attorney will have to establish a number of elements to prove loss of earning capacity:
- After an accident, plaintiffs need to demonstrate that their injuries in the accident have reduced their ability to earn income in the future. Your solicitor needs to present documentation and witness testimony to support your claim.
- All potential and past earnings need to be documented to ensure that you get the most out of your settlement. Personal injury attorneys have a comprehensive understanding of the complexities of this process and they can help you determine which evidence to gather and present.
- Your experience and skill set influence your estimated future earning capacity. For instance, if your professional abilities are in line with your pay, then you would have continued earning your wages had the accident not occurred. Your personal injury solicitor can demonstrate your expected future income backed by the right documents.
Getting the Right Legal Assistance
Apart from loss of earning capacity, personal injury claims may include many other types of losses such as pain and suffering, property damage, and loss of income.
Loss of earning capacity has a lasting impact on the financial well-being of you and your family. Getting a favorable compensation can provide a secure financial future while maintaining your present standard of living. Therefore, it’s always a better decision to enlist the services of professional personal injury attorneys to ensure that all the legalities are taken care of.