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How do you calculate pain and suffering compensation?

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Quick Answer

Pain and suffering compensation is calculated by multiplying special damages by a certain factor or by using a daily rate for each day someone has lived with pain and suffering since an accident, according to AllLaw.com. These methods are used by insurance companies when attempting to settle an injury claim.

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Full Answer

Insurance companies may multiply special damages, or the calculable losses arising from an accident, by a factor between 1.5 and 5. For instance, if someone's medical bills, car replacement, attorney's fees and time off work amounted to $100,000, the pain and suffering compensation may be between $150,000 and $500,000 plus the special damages, notes AllLaw.com. The multiplier takes into account the prospects for a fast recovery, day-to-day dealings with the injury and if another party was responsible for the accident that caused the injury.

A daily rate may be determined by how much work an injured party misses due to an injury, states AllLaw.com. If the person misses 100 days of work and makes $100 per day, the pain and suffering settlement is $10,000 using the daily rate, or per diem, method.

In a court case, a judge does not necessarily give a jury instructions on how to calculate pain and suffering in a civil case, according to Nolo. A jury may award more money based on the credibility of the plaintiff, likeability of the injured and the documentation to back up the plaintiff's claims in court.

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