In addition to physical pain and mental trauma, a car accident victim often suffers heavy financial losses.
If you suffer a serious injury from an accident, you may need to take days off from work, which could affect your earnings. Add to this your medical bills and the cost of repairing your damaged car and you could feel the financial pinch. Depending on the severity of the injury, you may even lose your ability to perform your previous job, or even worse, you could become partially or permanently disabled as a result of the accident.
What is Considered Loss of Income?
The amount of money or other employee benefits you lose as a result of your injury from an accident is referred to as “Loss of Income.” For instance, if you suffer a severe injury requiring hospitalization or time off from work, the wages and benefits you lose is considered as your loss of income.
If your injuries were caused by another person’s negligence, you can claim compensation for your lost earnings. Depending on the laws in your state, you may need to file a lawsuit against the party at fault to recover your financial losses. Even when you suffer income loss at intervals, you can still recover your lost earnings. For example, if your injury causes you to take a total of 30 days leave within six months, you are still entitled to financial compensation for your lost earnings. However, you need to provide valid documents to support your claim.
What Is Referred to as Lost Earning Capacity?
An accident victim may no longer be able to perform some tasks with the same intensity in which he or she was doing the work prior to the injuries. Any such loss in the ability to earn income is referred to as “Lost Earning Capacity.”
If you suffer any such injury that affects your future earning capacity, you may be entitled to compensation for your lost earning capacity, in addition to what you receive for your immediate loss of income. It may be difficult to determine any lost earning capacity. Some factors that are taken into consideration when calculating lost earning capacity are as follows:
- The work profile of the accident victim, including professional skills, years of experience, abilities, and talent.
- A doctor’s opinion on the severity of the injury and how that may affect the injured person’s future earning capacity.
- An estimate of the injured person’s possible loss of income in the future factoring in current market values and wage rates.
- An estimate of the total future losses of an injured person may vary depending on where he or she lives and the standard of living.
Difference between Lost Earning Capacity and Lost Income
It is relatively difficult to calculate one’s lost earning capacity, compared to the calculation of lost income. This is because the former requires making estimates based on the insured person’s ability to work in the future. Consult with an experienced Chicago personal injury lawyer from Willens law Offices. We can help you determine your lost earning capacity and help you recover compensation.