Emotional losses, often referred to as pain and suffering, are a crucial yet somewhat overlooked component of a personal injury claim. These damages compensate victims for the emotional and psychological distress they went through because of a person’s negligence.

Unlike economic damages that have clear financial values, emotional losses are a little harder to quantify. To deal with this challenge, insurance companies and courts use two main methods in calculating emotional losses. They are

• Multiplier method
• Per diem method

Understanding these methods can help victims assess the compensation they are entitled to better. Working with an experienced attorney familiar with these methods makes this process much easier. Visit sites like https://www.leonardhill.com/ to know more.

The Multiplier Method

This is the most commonly used method to calculate emotional losses. In this approach, a victim’s economic damages, such as medical expenses, lost wages, and rehabilitation costs, are multiplied by a certain number. This is called the multiplier, which ranges from 1.5 to 5. 

A higher multiplier is assigned to cases that lead to more severe injuries or emotional distress. For example, if the economic damages are estimated to be $30,000 and a multiplier of 2 is assigned, the pain and suffering compensation will be $60,000. 

Factors That Influence the Choice of Multiplier

Several factors influence the choice of multiplier, such as:

• How severe was the emotional distress? A more intense suffering may justify a higher multiplier.
• The duration of the suffering. If the victim’s distress is long-term or permanent, the multiplier may increase.
• The impact on the victim’s daily life and relationships. If the emotional loss affects work, personal relationships, and other daily activities, a higher multiplier may be used.
• Available evidence. Evidence like therapy records, medical diagnoses, and expert testimony can justify a higher calculation. 

Advantages and Disadvantages of the Multiplier Method

The main advantage is that the method is simple to use and is widely accepted. It also accounts for severe cases by offering a higher multiplier.

The main disadvantage is that the choice of the multiplier might be subjective, leading to unfair practices. Additionally, it is easy to underestimate or overestimate a victim’s emotional distress.

The Per Diem Method

This technique calculates emotional losses by assigning a daily monetary value to a victim’s pain and suffering. This daily rate is then multiplied by the number of days the victims experienced emotional distress or loss.

Quite often, this daily rate is based on a victim’s daily earnings. However, in some cases, a reasonable estimate is used. For instance, if the emotional suffering is valued at $200 per day and will last for 180 days. The total compensation will be $36,000.

Factors Influencing the Daily Rate

The aspects that affect the amount assigned in the per diem technique include:

• The victim’s income. High earners may receive a large payout because of the high daily rate. 
• Medical opinions. Experts or medical professionals may also provide an estimate based on how long the emotional distress is predicted to last. 

Advantages and Disadvantages of the Per Diem Method

The per diem technique provides a relatively straightforward way of calculating damages. Another advantage is that it works well for short-term emotional distress. This is also a disadvantage, as it makes it harder to apply in lifelong emotional suffering. The daily rate can also be easily disputed by insurers or opposing attorneys. 

Conclusion

The multiplier and per diem methods offer a structured way to calculate emotional losses. Both techniques have pros and cons. Choosing the best approach depends on the nature of your case and how long your pain is expected to last. Victims should consult an experienced lawyer to determine the most effective way of getting compensation since emotional damages can significantly affect the outcome of the case.