When you become unfit for work due to an accident, this often has significant financial consequences. You may be able to work less or not at all (temporarily or permanently), resulting in a loss of income. This loss of income is called loss of earning capacity in law. Victims of a traffic accident or occupational accident can recover this loss from the liable party.
In this article we explain:
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What loss of earning capacity is;
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How the calculation takes place in practice;
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Which factors influence the amount of compensation;
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The difference between employees and self-employed entrepreneurs;
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The role of pain and suffering;
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How Arslan Lawyers can assist you free of charge.
What is loss of earning capacity?
Loss of earning capacity is the loss of income that occurs when you can work less or not at all due to an accident. It concerns the difference between what you would have earned without the accident and what you actually earn after the accident.
This loss can occur after:
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A traffic accident (car, bicycle, scooter or motorcycle);
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An occupational or workplace accident;
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Another accident for which someone else is liable.
Because it often involves considerable amounts that continue until the pension date, it is important that this damage is calculated correctly and completely.
How is loss of earning capacity calculated?
The calculation of loss of earning capacity is complex. In many cases, the lawyer involves a specialized mathematician. The calculation differs depending on your situation:
1. Employees in salaried employment
For employees, the salary before the accident and the income after the accident are looked at.
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In the first year of illness, the employer usually continues to pay the salary in full.
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In the second year, the employer may reduce the salary by 30%.
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After two years, the employment contract can be terminated and a WIA benefit often follows.
The difference between the original salary and the (lower) benefit forms the basis for the loss of earning capacity.
2. Self-employed entrepreneurs
The calculation for self-employed persons is more complicated. It looks at the profit and turnover in the years before the accident and at expectations for the future.
Think of:
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Annual figures and tax returns;
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Market developments;
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Career perspective and growth opportunities.
Because entrepreneurs often do not have a safety net like employees, the loss of earning capacity can be very high.
Which factors determine the amount of compensation?
In calculating the loss of earning capacity, lawyers and mathematicians take into account among other things:
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Your income before and after the accident;
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The degree and duration of disability;
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Your age and level of education;
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Your career perspective (chances of promotion or career steps);
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Your profession and specialization;
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Possible additional income or independent activities.
In addition, account is taken of pension accrual, missed bonuses and other secondary employment conditions.
Pain and suffering and loss of earning capacity
In addition to the financial damage, an accident can also lead to psychological complaints, pain and limitations in daily life. For this there is the damage item Pain and suffering.
Examples:
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An employee who becomes permanently disabled after a serious traffic accident and loses his career;
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An entrepreneur who has to give up his business due to an occupational accident and thus not only misses income, but also sees his life work and future perspective disappear.
Pain and suffering is an immaterial compensation in addition to the loss of income.
Examples from practice
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Man, unfit for work after traffic accident: compensation for pain and suffering of €27.862,-.
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Victim with aggravated whiplash and concussion: compensation for pain and suffering of €59.005,- plus loss of earning capacity.
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Slaughterhouse worker, psychological complaints after accident: compensation for pain and suffering of €10.204,-, income damage compensated for 15 years.
These examples show that each case requires tailor-made solutions. The compensation can vary considerably, depending on the circumstances.
Other damage items in personal injury
Loss of earning capacity is often the largest item of damage, but you may also be entitled to compensation for:
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Medical expenses (own risk, physiotherapy, medicines);
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Travel expenses (to hospital or rehabilitation);
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Costs for household help and informal care;
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Costs for adjustments in home or transport;
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Pain and suffering (immaterial damage);
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Statutory interest on the compensation.
Free help from Arslan Lawyers
The calculation and recovery of loss of earning capacity is legally and financially complex. At Arslan Lawyers, we help you free of charge:
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We engage a mathematician or medical advisor where necessary;
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We formally hold the liable party responsible;
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We negotiate with the insurer for the maximum compensation;
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We make sure you get what you are entitled to.
The costs of legal assistance are recovered from the liable party. So our help is completely free for victims.
Conclusion
Loss of earning capacity can have enormous financial consequences after an accident. It is therefore important to seek legal help in time. At Arslan Lawyers, we ensure that your income damage is fully mapped out and recovered from the liable party. This allows you to focus on your recovery while we fight for the maximum compensation.
