The value of an injury is rather obvious. The cost of the treatment represents its value. But how can the insurance company put a value on a claimant’s pain and suffering?
How an insurance company would use the multiplier method
The multiplier method involves selecting a number that represents the extent of the pain and suffering. It is usually a number between 1 and 5, although it could be 6 or more, depending on the severity of the injury. That number is the multiplier. The multiplier becomes one factor in an equation. The other factor in that equation is the sum of all the economic damages. By using that equation, an insurance company can estimate the extent to which pain and suffering contributes to the overall costs for the accident.
Some companies use the per diem method
Personal Injury Lawyer in Sydney knows that the companies that use the per diem method select an amount of money as the average cost for dealing with the injury on a day-to-day basis. The victim of an accident must deal with any sustained injury from the date of that accident until the date of his or her complete recovery.
The victim’s doctor should declare when the patient/victim is recovered. The insurance company uses that information to determine the number of days that should be counted, when using the per diem method. This method might not allow for a full consideration of the victim’s pain and suffering. The amount of money chosen to represent the daily costs might fail to include certain challenges faced by the injured claimant.
A growing number of companies are using a computer program.
A computer program can be developed to consider the effect of a whole range of factors. That could prove an advantage for both the claimants and the insurers. A computer program could make calculations using a multiplier that was not a whole number. That would give a more accurate picture of the value for a claimant’s pain and injury.
A computer program could also be fixed so that it studied more than just the nature of a claimant’s injury. It might also base its calculations on the type of treatment used for the same injury. Insurers would welcome the ability to carry out such calculations.
Why would insurers welcome such a development? Because insurance companies do not like to pay for treatments that were given by a chiropractor. By using a computer program, an insurance company might be able to lower the value of the damages, in the case of a claimant with a personal injury complaint. It will be up to the SaaS companies to design the best way for insurers to make use of their computers, while pleasing their customers.