Calculating Future Income Loss
In most cases, a person or company who causes an injury in Ontario is legally required to put the injured person back in the financial position that they would have been in if the injury had never happened. This means that, among other things, damages are payable to replace the income that the injured person would have made and will now fail to earn because of their injured state.
Future loss of income is calculated by determining what the injured person would have made if the injury had not occurred and reducing it by any money that the person will still be able to make even though they have been hurt.
Given the uncertainty of proving what will happen in the future, the injured person must only establish that there is a reasonable chance of the future economic loss occurring.
At trial, evidence is led about what the injured person would likely have done for work if they had not been hurt. This includes evidence about any potential promotions, early retirement or career changes. The amount of future income loss is then calculated using a mathematical factor set out in the Rules of Civil Procedure. This factor takes into account issues like future inflation, interest rates and the chance that the injured person may pass away earlier than his or her expected life span.
Proving future income loss is no easy task. It usually requires a combination of expert evidence, evidence from the injured person’s employer and/or co-workers as well as specific evidence from the injured person about their career plans. If you or someone you know has suffered an injury that has caused them to suffer an income loss, it is important to consult with an experienced personal injury lawyer as soon as possible.
Oatley Vigmond represents injured individuals in their claims against insurance companies. Oatley Vigmond can be reached at (705) 726-9021 or 1-888-662-2481.
