Future losses

Recoverable future losses

The most common future losses are:

1. •

   loss of earnings

2. •

   loss of pension

3. •

   cost of care and services

4. •

   cost of treatment and aids

5. •

   cost of accommodation

For further guidance, see Practice Notes:

1. •

   Recoverable future losses

2. •

   Other heads of future loss

3. •

   Aids and equipment

4. •

   Valuing serious brain injury claims

The multiplicand and the multiplier

Despite the availability of periodical payments orders, the great majority of personal injury cases are concluded with the award of a single lump sum. The future loss calculation must take account of the fact that all of the damages are received at once and before (for example) any earnings would have been received. The claimant is able to invest the funds until they are needed and they retain any return in the meantime. This makes it necessary for the damages to be discounted for accelerated (or early) receipt. To achieve this the court will calculate a multiplicand and apply a multiplier.

The starting point in assessing a future head of loss is to calculate the multiplicand, which is simply