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Damages for loss of earning capacity  – what it means

When you are injured due to another’s negligence for instance on the road or at work, you can make various claims including any consequential losses.

Personal injury victims often suffer disabling conditions that put them at risk of not being able to work in the same capacity in the future. This consequential loss is the loss of your earning capacity.

What does loss of earning capacity entail?

Loss of earning capacity compensates for the risk or disadvantage, you will face in securing an equivalent job in the open market, if you should lose the job that you currently hold.

In other words, such loss refers to the weakening of your competitive position in the open labour market for the same job you now hold.

How is it proven?

Your medical experts must state the disabilities and limitations you face as a result of the injuries you have suffered. It has to be shown that these disabilities affect your job performance and though you are currently managing as best as you can and your income is not affected, should you lose the present job, you will not be the most suitable candidate for the same job in another organisation given your disabilities and limitations.

What are the factors that the Court will look at?

The Court will look at all the facts and circumstances including

  • your age and qualifications;
  • your length of service;
  • your remaining length of working life;
  • your income; and
  • the nature of your disabilities and the type of work you do

The Court will then assess the amount of damages ie the compensation you should be awarded, for this disadvantage.

It therefore important and prudent for you to see an experienced personal injury lawyer to advise you on the claims you can make and for them to put forth the best for you so that you will be reasonably compensated for the losses and injuries you have suffered.

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