Understanding Special Damages in Personal Injury Claims

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Quick Answer: Special damages are a crucial component of personal injury compensation, covering all financial losses directly resulting from your injury. These can include medical expenses, lost income, travel costs, and other out-of-pocket expenses.

When pursuing a personal injury claim, many people focus solely on compensation for their pain and suffering. However, special damages – the financial losses you’ve incurred due to your injury – are an equally important part of your claim. At Direct2Compensation, we believe in empowering claimants with knowledge about all aspects of their potential compensation. This guide will explore special damages in depth, helping you understand what you can claim and how to maximise your settlement.

What Are Special Damages?

Part of the final value of a claimant’s settlement, special damages are the quantifiable financial losses you’ve suffered as a result of your injury. Unlike general damages, which compensate for pain and suffering, special damages are based on actual monetary losses and expenses. They are designed to put you back in the financial position you would have been in if the accident hadn’t occurred.

It is the term used to describe the element of a claim that arises from the costs that an injured claimant has incurred. Such costs could be minor things, such as bus or taxi fares to and from hospital, or petrol and parking expenses. However, they can also become large elements of a claim such as lost income. Claimants can also claim for items or clothing broken in an accident, such as spectacles, or private medical treatment if it can be proven that it is necessary to enable a quicker recovery.

Types of Special Damages

Special damages can cover a wide range of expenses and losses, including:

  1. Medical Expenses
  • Prescription costs
  • Private medical treatment
  • Physiotherapy or massage therapy
  • Medical equipment or aids
  1. Travel Expenses
  • Public transport fares to medical appointments
  • Parking fees at hospitals or clinics
  • Fuel costs for medical-related travel
  1. Loss of Earnings
  • Current lost wages
  • Potential future loss of earnings
  • Lost bonuses or overtime
  1. Additional Costs
  • Care costs (professional or provided by family)
  • Home or vehicle modifications
  • Damaged personal items (e.g., clothing, glasses)
  1. Household Expenses
  • Cleaning or gardening services you now require
  • Increased utility bills due to being at home more

Proving Special Damages

To successfully claim special damages, you need to provide evidence of your losses. This is where meticulous record-keeping becomes crucial:

  1. Keep all receipts for expenses related to your injury
  2. Document travel mileage for medical appointments
  3. Obtain statements from your employer regarding lost wages
  4. Get quotes for any necessary home modifications
  5. Keep a diary of care provided by family members

Calculating Loss of Earnings

For employed individuals:

  • Provide payslips for at least 3 months prior to the accident
  • Your solicitor will calculate the difference between your normal salary and any statutory sick pay received

For PAYE employees that don’t receive full sickness pay during sick leave, they will receive statutory sickness benefit. They can claim back the difference between the sum of money received for statutory sickness benefit and their usual average salary.

For self-employed claimants:

  • Provide accounts for the previous 2-3 years
  • Your solicitor may need to involve a forensic accountant to accurately calculate losses

Future Losses

In cases of serious injuries, you may be able to claim for future financial losses. This could include:

  • Ongoing medical treatment costs
  • Future loss of earnings if you can’t return to your previous job
  • Pension losses

Calculating future losses is complex and often requires expert input from medical professionals and economists.

Maximising Your Special Damages Claim

To ensure you receive full compensation for your financial losses:

  1. Start documenting expenses immediately after your accident
  2. Don’t overlook small expenses – they can add up
  3. Be honest and accurate about all your losses
  4. Consult with your solicitor before incurring significant expenses
  5. Consider all areas of your life that have been financially impacted by your injury

The Importance of Legal Representation

While it’s possible to claim directly with an insurer, doing so often results in undervalued settlements. A specialist solicitor will:

  • Ensure all eligible expenses are included in your claim
  • Help you gather the necessary evidence
  • Accurately calculate complex losses like future earnings
  • Negotiate with insurers to maximize your settlement

Special damages are a vital part of your personal injury compensation, ensuring you’re not left out of pocket due to someone else’s negligence. By understanding what you can claim and keeping thorough records, you can help ensure your settlement truly reflects the financial impact of your injury.

Remember, every personal injury case is unique. For personalised advice about your specific situation and to ensure you’re claiming all eligible special damages, don’t hesitate to contact Direct2Compensation. We’re here to help you navigate the claims process and secure the full compensation you deserve.

Frequently Asked Questions

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Comments & Questions

Read on for questions and advice about claiming...

I have similar symptoms to CTS after a 4th metacarpal spiral fracture in April in a work place accident. I stopped receiving pay in July and have had to cash in part of my pension pot to survive. I am now facing capability tests and the risk of losing my job. I’m aware of claiming for loss of earnings, but what what about my cashed in pension pot and the potential loss of my job?

Ian Morris

Our specialist Solicitors would seek to ensure that all recoverable losses and costs were included in any claim settlement. Lost income elements of a claim may also include future loss of income and future pension issues and this can be considered in your case.

Reply

Hi there, just a quick question, do you take a percentage of a special damages award? (ie loss of earnings, medical expenses, rehabilitation costs etc)

Ian Morris

Gary

Hi, thanks for taking the time to ask us a question about No Win No Fee personal injury compensation and how the 25% deduction works when a claim is won.

To answer your question, Yes the 25 % comes off all the past losses – and that does include any out of pocket expenses incurred, general damages for the actual injury/pain/suffering plus loss of earnings and care etc. When calculating the deduction, Solicitors normally exclude treatment costs and leave those 100% intact. However, this is done on a case by case basis and is not always the case.

However, it is important to note that the 25% deduction will not include any future losses – for example future loss of earnings, disability on the labour market, future care costs or future treatment costs etc. The 25% deduction element only applies to past losses.

It is also important to note (and I appreciate that this is a little confusing), that the 25% deduction fee is not always the full 25% of a total claim settlement as the deduction that is capped at a MAXIMUM of 25% is also subject to another cap to ensure fairness for successful claimants. The 25% deduction is capped at 100% of the value of the actual costs a succeeding solicitor has incurred in the running of a claim for personal injury compensation, or 25% of the total compensation settlement (as outlined above) – whichever is the lower of the two figures.

As an example, if a successful claim settled for damages of £20,000 and the successful solicitor had carried out work to the value of £3,000, the most that they could deduct from the compensation settlement would be £3,000, even though 25% would be £5,000. In this example, the £3,000 figure is the lower of the two figures. However, if the same claim settled for damages of £20,000 and the successful solicitor had carried out work to the value of £15,000, the most they could deduct would be the 25% of the full total (at £5000).

I hope that this makes sense. It is also worth noting that solicitors are open to discussing the deduction and may negotiate – but only on very strong cases where success is very likely and damages are estimated to be high.

Yours sincerely

Ian Morris

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