Understanding Compensation in Public Liability Claims

Understanding Compensation in Public Liability Claims

Published on 30 November 2023
Last updated on 29 February 2024

Public liability claims play a pivotal role in ensuring that individuals who have suffered harm due to the negligence of others are able to seek and obtain rightful compensation. In instances where negligence is evident, the law provides a mechanism for victims to claim damages, a term broadly used to refer to monetary compensation. This blog aims to demystify the types of compensation available under public liability claims, dividing them into two broad categories: Non-economic loss and Economic loss. A comprehensive understanding of these can empower individuals to navigate the complex legal landscape and seek the compensation they deserve.

A person lying on the floor with his legs in the air with text Know Your Rights: Claiming Compensation!

1. Non-Economic Loss

1.1 Definition and Explanation

Non-economic loss pertains to damages that are not easily quantifiable in monetary terms. These are intangible losses that significantly impact an individual’s quality of life. The compensation for non-economic loss serves to acknowledge the pain and suffering endured, even though it may not tangibly replace what has been lost.

1.2 Types of Non-Economic Loss

Non-economic losses cover a wide range of damages including, but not limited to:

  • Pain and Suffering: Compensation for physical pain and emotional distress.
  • Loss of Enjoyment from Work, Hobbies, and Sports: Recognition of the diminished ability to partake in and enjoy regular activities and hobbies.

1.3 Calculation and Compensation

The Civil Liability Act provides a framework for calculating compensation for non-economic loss, whereby injuries are assessed and compared to a most extreme case. A lump sum amount is then awarded based on this comparison.

2. Economic Loss

2.1 Definition and Explanation

Economic loss refers to tangible financial losses incurred as a direct result of the injury. These losses are quantifiable and cover a range of economic damages that the injured party has suffered or is likely to suffer in the future.

2.2 Types of Economic Loss

Economic loss in public liability claims may include:

  • Past and Future Loss of Income: Compensation for loss of earnings and potential future earnings.
  • Medical Expenses (Past and Future): Coverage of all medical-related expenses.
  • Loss of Capacity to Care for Oneself and Dependants: Compensation for the reduced ability to care for oneself and dependants.
  • Loss of Superannuation Entitlements: Acknowledging the impact on future retirement funds.

2.3 Calculation and Compensation

The compensation for economic loss is usually paid out as a lump sum at the conclusion of the claim. The amount is determined based on the nature and extent of the injuries and how they affect the individual’s day-to-day life.

3. Domestic Care and Assistance

3.1 Paid Care

When an individual is no longer able to undertake certain domestic tasks due to an injury, they may opt for paid domestic services. This section provides examples and discusses the commonality of paying for assistance with tasks such as cleaning, cooking, laundry, and gardening.

3.2 Gratuitous Care

Contrastingly, gratuitous care refers to care provided by family or friends without payment. This section explains how individuals can claim compensation for gratuitous care, emphasizing that the care must be reasonable and directly related to the injury or incapacity.

In public liability claims, the ‘6 x 6 rule’ applies for claiming gratuitous care, requiring that the services be provided for at least 6 hours per week for a minimum of 6 consecutive months. The Civil Liability Act outlines these requirements, ensuring that individuals are fairly compensated for the voluntary care they receive.

4. Conclusion

In the complex realm of public liability claims, understanding the intricacies of compensation types is crucial. If you are navigating a public liability claim, our expert team at Ascent Lawyers is ready to assist you. Remember, we offer a free initial consultation and operate on a No Win No Fee basis, ensuring your access to justice is uncompromised. Contact us today to explore your options.

5. Client Video Testimonials

We invite you to view our previous client video testimonials below:

Disclaimer: Ascent Lawyers owns all copyright in the text. This article is of a general nature and should not be regarded as legal advice or relied on for assistance in any particular circumstance or emergency situation. To obtain legal advice in relation to your own circumstances, please contact us for consultation.

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