This is a growing collection of topics aimed at developing a broader understanding of personal injury claims to assist professionals in the medico-legal industry. While these are generally accepted principles, there may be differing opinions.

Possible vs Probable

Actuary speak says that a “probability” is a chance from 1% to 100%.
Legal speak says that a “probability” is a chance greater than 50% (i.e. likely to occur) and a “possibility” is a chance of less than 50% (i.e. unlikely to occur) (Koch Consulting Actuaries Newsletter, 2018). 

The court’s view is that claimants' losses should be based on the most likely progressions. This has resulted in “probable” scenarios being calculated at 100% and “possible” at 0%. It is therefore crucial that IOPs are clearly identifying the most probable earnings and progressions, and understand the impact of phrases that imply a postulation is unlikely (e.g. might, unlikely, best case scenario, may, possibly, should they).

If there is a greater chance of a particular scenario and the IOP wants the actuary to allow for it, they should state that it is likely, or alternatively, provide a percentage chance of occurrence.

 

Share link

Earnings Expert - Understanding remuneration

Salary Structure Payslips: Valuing the total earnings Loss of earnings and support claims are based on total earnings.
... read more

The misuse of Paterson grading

The Paterson employment grading model is frequently used by IOPs in medico-legal reports. The use, and misuse thereof, h
... read more

Self-employed claimants without a Forensic Accounting report

If attorneys do not want to appoint an accountant, actuaries must use the IP report provided. The best approach is to r
... read more

Possible vs Probable

Actuary speak says that a “probability” is a chance from 1% to 100%. Legal speak says that a “probabil
... read more

How IOP reports are misinterpreted

Here is a list of phrases commonly found in IOP reports where the technical or legal interpretation differs from the ind
... read more

Employer Certificates

An employer certificate is a valuable form of collateral that can provide information missing from other sources. Tax ce
... read more

Apportionment

A person who is being sued for damages caused by their negligence may raise a defense of contributory negligence. Contri
... read more

Nurses' Remuneration

This serves as a guide on the progression and promotion structures for government-employed nurses.RanksFirstly, any pers
... read more

Educators' Remuneration

This serves as a guide on the progression and promotion structures for government-employed educators.Relative Education
... read more

SAPS Remuneration

This serves as a guide on the progression and promotion structures for South African Police Services. Training and Indu
... read more

Public Service Act appointees not covered by OSDs

Progression and promotion structures for Public Service Act appointees not covered by Occupation Specific Dispensation.I
... read more

Government Employees’ Remuneration

The purpose of this guide is to assist Industrial Psychologists in understanding the remuneration structures in place fo
... read more

2 Accidents

There may be cases where the claimant is involved in 2 motor vehicle accidents and can claim loss of earnings for each.
... read more

Old Age Pension Grants & Retirement

South Africans with an income less than 3.8596 times the pension grant are entitled to an old-age pension from age 60 (c
... read more

Deductible & Non-deductible benefits in Loss of Earnings Claims

A deductible benefit is a benefit that is deducted in the loss of earnings calculation, thus resulting in a lower claim
... read more

Total Package vs Total Earnings

The total package includes fringe benefits, but might excludes non-guaranteed earnings like overtime, commission, and pe
... read more

Basic Statistics & Earnings Research

To use earnings research appropriately the underlying statistics need to be understood. Data providers sort earning
... read more

How Contingencies Work

Contingencies refer to events that may happen with some level of probability and could affect earnings or the need for s
... read more

Taxation of Damages Awards

These lump sum awards are capital and are thus tax-free in the hands of the recipient. When calculating the lump sum, no
... read more

Earnings Inflation and Real Growth

Interest, earnings inflation, and net discount ratesThe interest rate is the rate that we assume claimants would earn on
... read more

Loss of Support Claims

Loss of support claims may arise from any situation where a person who was earning an income and has dependents is unlaw
... read more

Loss of Earnings Claims

The goal of the calculation is to determine a lump sum that will compensate the claimants for their loss. Loss of earni
... read more