CLAIMS FOR LOSS OF EARNING CAPACITY
With this summer has arrived a significant change in the method of calculating claims for future loss of earnings and earning capacity on the multiplier/multiplicand approach.
The 6th edition of the Ogden tables was published in May. The latest tables are based on updated mortality rates using the latest set of national population projections. They now include guidance on splitting multipliers in cases of variable future losses and expenses. But, more significantly, this edition also advances a new methodology for assessing appropriate deductions to be made to the working life multiplier for dealing with contingencies other than mortality.
Factors which were previously taken into account in assessing the appropriate discount included occupation, industrial sector, geographical location and levels of economic activity. However, recent research has shown that the factors which have the most effect on a person’s future employment status are whether the person was employed or unemployed at the outset; whether the person is disabled or not; and the educational attainment of the person. In addition, the
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