Emotional pain and suffering are the mental and emotional effects of an injury to a person’s life. Since such losses aren’t accompanied by receipts or invoices, insurance companies settle using a few different approaches to determining the value of these losses.
Many questions arise after a serious accident, one of them being how much is emotional distress worth? Some people rely on an emotional pain and suffering calculator to determine what they (and their insurance company) may be able to recover, but most insurance providers don’t just abide by a formula when considering a claim.
Instead, adjusters look at medical records, a history of medical treatment, witness statements, and the severity of the injury before determining settlement value. In personal injury cases, the laws of your state and the evidence at hand will have a bigger impact on the outcome than will any calculator.
But before we get to the subject of how difficult it is to measure pain and suffering, let’s first understand why.
Why Is Emotional Pain and Suffering Difficult to Measure?
Emotional suffering is not a dollar amount, like medical bills or lost wages. Everyone experiences anxiety, depression, sleep issues, post-traumatic stress, and a loss of enjoyment of life in different ways. The majority of states enable injured persons to claim non-economic damages. Examples include negligence claims, which are usually subject to state law, and evidence of how an injury impacted a person’s normal lifestyle in court.
What are the Common Methods used by Insurance Companies?
Insurance adjusters will use multiple methods, rather than a single measurement.
The Multiplier Method
One of the most popular is this.
The insurer adds up the economic damages, which include medical costs and lost income, and then multiplies the number by a factor of 1.5 to 5, or more. A better multiplier is given for more serious injuries that have long–term emotional impacts.
The Per Diem Method
Some insurance companies give a dollar figure to the individual’s pain and emotional suffering for each day of the injury. This daily rate is times the number of days the person is expected to suffer greatly. Simple, but not suitable for all situations.
Reviewing Medical Evidence
The most important document that is likely to be found is medical documentation.
Insurance companies examine:
- Records of therapy/counselling sessions
- Physician notes
- Mental health diagnoses
- Prescription history
- Psychological evaluations
How Does Daily Life Affect the Claim?
Insurance companies also look beyond medical records.
Adjusters may review evidence showing whether the injury has affected:
- Family relationships
- Employment
- Hobbies and recreation
- Sleep quality
- Social interactions
- Ability to perform everyday tasks
For example, someone who develops severe anxiety after a vehicle collision and can no longer drive may present stronger evidence of emotional suffering than someone whose symptoms resolved within a few weeks.
Does State Law Influence Compensation?
Yes. Each state has its own personal injury laws, which will have an impact on damage awards. For instance, California’s statute on comparative fault is under California Civil Code § 1431.2, Georgia’s modified comparative fault is found in O.C.G.A. § 51-12-33. If an injured party is partially to blame for an accident, then he/she may receive less in damages for both economic damages and non-economic damages, depending on the laws of the state.
Key Takeaways
- There are a number of ways that insurance companies determine the emotional damages and suffering.
- Starting points include multiplier and per diem.
- The best evidence is probably from medical records and mental health treatment.
- Limitations of daily life and witness statements can enhance the credibility of a claim.
- State laws, such as the comparative negligence provisions, may have an impact on compensation.
