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Accident Severity

Accidents are events that happen unexpectedly without deliberate plan or cause. They occur somehow in the lives of people ubiquitously without anticipation in that particular time. Most severe accidents take place due to people’s carelessness, rushing into uncertain things. Speaking of accident severity, it pertains to quantifying the degree of damage rather than the number of losses.

One of the most neglected but an essential part of any good financial plan is the insurance, a term for a promise of compensation for specific losses in the future in swap for a periodic payment. The monetary charge of the loss caused by an accident refers to accident severity which is of great use in verifying the actual amount of money charged by insurance companies. Furthermore, insurance’s role to an individual, company or other entity is to shield its financial well-being in the case of unpredictable loss.

Instances of accident severity are most observed in vehicular/car accidents since they cover a large number of populace. Insurance companies support several avenues to be used in determining the value to be claimed by victims for their injuries. Most auto accident attorneys are familiar with the following methods: a computer program used in the insurance industry by the name of Colossus; medical special costs are multiplied by a number representing the severity of the victim’s injuries and added to lost income in the multiple of specials method; and the average daily income across the nation is multiplied times the number of days the victim suffered from their injuries to reach a per diem settlement amount.

Multiple of specials is the most convenient method and of priority for individuals and their lawyers to identify amount of compensations. When scrutinized, medical costs are being multiplied embodying the injuries’ severity by a number ranging between 1.5 and 5 and at some point in time arises to 10 when it reaches to the most extent situations. The multiplier per se can be influenced by such factors as follow: seriousness of a person’s injuries; length of recovery; whether the recovery was partial or total; or any aggravating circumstances that were a part of the accident, such as substance abuse or a criminal act.

The aforementioned elements are tough to measure. However, the strategies being conducted by insurance companies and courts in the assessment of the elements are not strangers to auto accident attorneys. In addition, they can also help trace the amount of compensation to look for.

An existing formula or calculation is presented to determine a ratio to be used in appraising the degree of seriousness or severity to the accident or injuries encountered by the insured: the ratio of the amount of loss to the value of property in property insurance, or the amount of loss to exposure units in liability or workers compensation insurance.

Obviously, the degree of seriousness of an accident has corresponding exchange of money from the cooperating insurance company to the insured. But it is not at all times good to be dependent on what are receivables. It’s better to be safe and sound first if there is greater chance of accident evasion than to be prone in danger relying on the insurance to be claimed. Insurance is indeed an assurance, yet there is much to be done to avoid skyrocketing accident severity issues.