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By Sara Canning
When someone gets injured due to another person’s negligence, they may be entitled to compensation for their losses. In personal injury cases, victims can recover damages for medical expenses, lost wages, and other financial hardships.
However, there is another crucial component of compensation—pain and suffering.
Unlike medical bills, which have a clear dollar amount, pain and suffering are subjective and harder to quantify. That’s why personal injury lawyers rely on two primary methods to calculate the pain and suffering their clients endure—the Multiplier method and the Per Diem method.
If you’ve been injured in an accident, understanding how pain and suffering are calculated can help you know what to expect from your claim.
How These Two Methods Work and How They Might Apply To Your Case
The Multiplier Method
The Multiplier method works by taking the victim’s economic damages—such as victim’s economic damages and lost income—and multiplying them by a certain number, known as the multiplier. The multiplier usually ranges from 1.5 to 5, depending on the severity of the injuries.
For example, if someone has $20,000 in medical bills and lost wages, and their injury is considered moderately severe, the lawyer might apply a multiplier of 3. This means the pain and suffering damages would be calculated as:
$20,000 x 3 = $60,000 in pain and suffering damages
Factors that affect the multiplier include:
● The severity of the injury
● The length of recovery time
● Whether the injury causes total permanent disability
● Emotional distress and mental anguish
● The impact on daily life and relationships
Insurance companies often argue for a lower multiplier, while personal injury lawyers fight for a higher one. Having strong evidence, such as medical records, expert testimony, and personal statements, can help justify a larger multiplier.
The Per Diem Method
The Per Diem Method takes a different approach by assigning a daily dollar amount to the victim’s pain and suffering. “Per diem” is a Latin term meaning “per day,” and this method aims to compensate the victim for every day they experience pain and distress due to the injury.
To use this method, a reasonable daily rate is determined, often based on the injured person’s daily earnings. For example, if the victim earns $200 per day at work and their injury prevents them from living a normal life for 100 days, the pain and suffering compensation would be:
$200 x 100 days = $20,000 in pain and suffering damages
Some lawyers argue that this method makes sense because it connects the victim’s suffering to a concrete financial value. However, insurance companies may challenge the daily rate, claiming it is too high or unrealistic.
That’s why strong documentation, such as medical reports and personal journals detailing the recovery process, can help support a per diem claim.
Multiplier or Per Diem: Which Method Is Better?
There is no universal answer to which method is better—it depends on the specifics of each case. Multiplier is more commonly used for serious injuries with long-term consequences, while Per Diem works well for temporary injuries that heal over time.
A skilled personal injury lawyer will assess the case details and choose the method that maximizes the compensation for their client. Sometimes, attorneys use a combination of both methods or negotiate with the insurance company based on the strengths of the case.
Conclusion
Calculating pain and suffering in a personal injury case is not an exact science, but the Multiplier Method and the Per Diem Method provide structured ways to determine fair compensation.
Understanding these methods can help accident victims navigate the legal process and ensure they receive the financial recovery they deserve. If you or a loved one has been injured, consulting a personal injury lawyer can help you get the best possible outcome for your case.