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How Compensation Is Determined & Subsequently Paid


There are an awful lot of resources on the internet to reference if you’ve been in an accident and wish to claim compensation. If you don’t know what you’re doing, these guides can be invaluable for assisting you through the next steps. There hasn’t been so much written about what to expect from your reward, though. All of the focus is on the steps you’ll need to take to claim, such as; visiting the doctor, seeking legal advice and documenting the event in detail.


This post is a little bit different to that. Instead, I intend to address how compensation (and subsequently, its amount) is determined. What are the things that are looked at when deciding your claim? And likewise, how will the award ultimately be given to you? Let’s dig in.



What Determines Your Compensation


The theory behind the compensation process is fairly simple. If you’ve been injured or otherwise affected by an accident beyond your control, the law dictates you’re entitled to a fair reward. There are a number of things that will be analyzed in detail to determine how much you’re owed. The main scrutiny will be on the severity of your injury, be it physical or otherwise. A judge will look at how badly you were hurt, and the emotional distress you’ve endured as a result.


Obviously, the more severe the effects, the more you’ll ultimately be able to claim. But there are a number of other factors that will go some way in determining the amount that is due to come your way. Loss of earnings is a big component. If you’ve had to take time off work due to the injuries you’ve sustained, this will be reflected in the overall compensation package. You’ll also be rewarded for any loss of amenity, which means being unable to live your life as you normally would. For example, if you’ve been unable to pursue hobbies due to your injury, that will also factor into the final claim.


How Will The Compensation Be Paid?


Once the amount has been determined, there are a number of ways that you could be paid your due amount. The two most common payments are either a lump sum or a structured settlement. Obviously, both have their own pros and cons associated with them. A lump sum will be the entire amount due paid to you in its entirety.


A structured settlement could be more appropriate depending on your circumstances. With this method, you’ll receive numerous payments over the course of a predetermined period of time. You can find out more about this at


If you’ve been awarded a structured settlement but don’t feel this suits you, you can find companies that are willing to ‘buy’ it from you. They’ll simply give you the amount upfront and then take the parachute payments for themselves. Hopefully this has clarified some things for you that you may not have understood before. The important thing is that you seek fair compensation for your injuries.



Article writer, life lover, knowledge developer and owner at

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