Non-economic damages are one possible class of damages available in a personal injury case. The other classes are economic damages and punitive damages. Non-economic damages compensate you for intangible psychological losses. In many cases, they make up the majority of the claim.
What Exactly Are Non-Economic Damages?
According to the definition provided by the Georgia Code, “non-economic damages” include compensation for:
- Anxiety
- Discomfort
- Disfigurement
- Physical pain
- Physical impairment
- Suffering
- Loss of consortium
- Loss of enjoyment of life
- Loss of society and companionship
The Georgia Code also authorizes compensation for “[a]ll other non-pecuniary losses of any kind or nature.“ In other words, a court can award non-economic damages even for losses that fall outside of the above-listed categories.
Maximum Medical Improvement (MMI)
You reach “maximum medical improvement” on the date that your doctor confirms that your medical condition has improved as much as it is ever going to. That means:
- You have made a full recovery, or
- You are suffering from a permanent disability.
It’s difficult to calculate the value of your claim until you reach MMI because you must speculate on the amount of future damages you will incur.
Calculating Non-Economic Damages
There are many ways to calculate the value of economic damages, but there is no established formula in the law. Following is a listing of some of the most common calculation methods.
The “Per Diem” Method
The per diem method requires you to assign a daily dollar value to your pain. You then count the number of days that elapsed between the date of your injury and the date you reach MMI. Finally, multiply the first figure by the second to arrive at a figure for non-economic damages.
The Multiplier Method
Under the multiplier method, you choose a ‘multiplier’ with a value somewhere between 1.5 and 5, depending on the intensity of your pain and (sometimes) other factors. Multiply your multiplier by the amount of your economic damages or, alternatively, by the amount of your medical expenses, to arrive at the amount of your non-economic damages claim.
Software Programs
Insurance companies have software programs that purport to calculate, based on numerous factors, just how much your non-economic damages claim is worth. As you might suspect, these programs tend to produce estimates that are very favorable to the insurance company.
Negotiation and Litigation
Ultimately, many non-economic damage claims are resolved through negotiation. Because there is no fixed standard for valuing pain, suffering, or emotional distress, outcomes can vary widely depending on the strength of the evidence, the credibility of medical documentation, and the skill of the attorney advocating on your behalf.
In some cases, particularly where injuries like whiplash or chronic pain lack obvious physical evidence, insurance companies may attempt to downplay or dispute the extent of suffering. Strong legal representation becomes especially important in these situations.
Why Non-Economic Damages Matter
Non-economic damages are not just an “extra” component of a claim; they are often the only way to account for how an injury has truly changed your life. Chronic pain, emotional distress, and the inability to enjoy everyday activities can have lasting consequences that deserve meaningful compensation.
Contact an Experienced Columbus Personal Injury Lawyer at Mark Casto Personal Injury Law Firm
If you are seeking non-economic damages in your claim, our Columbus personal injury attorney can help. We will pursue the full extent of your economic and non-economic damages. Get in touch today with Mark Casto Personal Injury Law Firm by calling (706) 940-4030 to schedule your free consultation.
