Loss Of Future Earnings Research Articles

On stochastic modelling of actuarial compensation for loss of future earnings in Turkey

Abstract This article presents an actuarial perspective to estimate the economic loss for compensations resulting from a wrongful act. The main aim of this study is to propose a stochastic approach for modelling discount rates and survival probabilities which are used to calculate the present value of the future loss of earnings. We adopted the Wilkie model as an economic scenario generator to forecast future stochastic discount rates and fitted the Lee–Carter and the Heligman–Pollard models to forecast future age-specific survival probabilities using Turkish data. We discussed the impact of stochastic modelling on annuity values and compensation amounts through sensitivity analyses. We also compared the compensation amounts for various cases with the benchmark case representing current practice in Turkey. The results show that the compensation amounts are substantially affected by the financial assumptions, particularly in the case of an unstable economy. The major finding is that the uncertainty in future mortality rates is largely outweighed by the uncertainty associated with future financial and economic variables in the Turkish case.

Disparities on the Basis of Nationality, Ethnicity, and gender in Road Accident Compensation in Israel

AbstractThis study documents disparities on the basis of nationality, ethnicity, and gender in court awards regarding the loss of future earnings in road accident cases in Israel. We analyze a random selection of 236 court decisions in road accident cases that reached final decisions on their merits between 1978 and 2018 in which the nationality, ethnicity, and gender of victims were identifiable (via first and last names). We show that, although in Israel the reliance on sex- and race-based statistical data to calculate damages in tort cases is a prohibited practice, courts tend to reach lower estimates of future lost earnings for Mizrahi Jews, Arabs, and women than those of otherwise similarly situated Ashkenazi Jewish men. In the analyses, we hold injured persons’ earnings at the time of the accident and occupations constant. The effects we observe are significant in magnitude. The results of our study are particularly noteworthy given the fact that we document disparities that correspond with the already existing labor force inequalities and discrimination in hiring, salary, and promotion on the basis of nationality, ethnicity, and gender in Israel.

Court Awards Of Damages For Loss Of Future Earnings: An Empirical Study And An Alternative Method Of Calculation

This article examines the effect upon damages for personal injury of methods used in the United States of America to calculate loss of future earnings. The work of lawyers is examined from the perspective of labour economists. The damages calculated by using these alternative methods are compared with those actually awarded in over a hundred cases determined by courts in England and Wales. This interdisciplinary and comparative study reveals that the tort system fails to satisfy one of its main objectives in that it does not provide recipients of damages with full compensation.

Les préjudices professionnels des jeunes victimes de dommages corporels. La reconnaissance jurisprudentielle du préjudice professionnel des jeunes victimes. Partie 1

Compensation for professional damages in respect of young victims who remain disabled following an accident or assault remains problematic for personal injury compensation practitioners. However, such professional damages, recognized in principle by the Dintilhac group, were confirmed by the Court of Cassation in terms of full compensation for damages, both for loss of future earnings (PGPF), and professional incidence (IP). Though the burden of proof lies with the victim, experts have a major role to play in assessing these losses by setting out the foreseeable impact of the after-effects on the victim's professional activities, and on his or her professional potential before and after the injury, along with limitations in terms of the jobs the victim is subsequently able to do.

Describing economic benefits and costs of nonstandard work hours: A scoping review.

The benefits of nonstandard work hours include increased production time and the number of jobs. While for some sectors, such as emergency services, around-the-clock work is a necessary and critical societal obligation, work outside of traditional daytime schedules has been associated with many occupational safety and health hazards and their associated costs. Thus, organizational- and policy-level decisions on nonstandard work hours can be difficult and are based on several factors including economic evaluation. However, there is a lack of systematic knowledge of economic benefits and costs associated with these schedules. We conducted a scoping review of the methodology and data used to examine the economic benefits and costs of nonstandard work hours and related interventions to mitigate risks. Ten studies met all our inclusion criteria. Most studies used aggregation and analysis of national and other large datasets. Costs estimated include health-related expenses, productivity losses, and projections of future loss of earnings. Cost analyses of interventions were provided for an obstructive sleep apnea screening program, implementation of an employer-based educational program, and increased staffing to cover overtime hours. A paucity of studies assess nonstandard work hours using economic terms. Future studies are needed to expand economic evaluations beyond the employer level to include those at the societal level because impacts of nonstandard work go beyond the workplace and are important for policy analysis and formulation. We pose the opportunity for researchers and employers to share data and resources in the development of more analyses that fill these research gaps.

Rising importance of remote learning in India in the wake of COVID-19: issues, challenges and way forward

PurposeThe present paper highlights the increasing importance of remote learning amidst the closure of educational institutions in India in the wake of COVID-19. This paper not only discusses critical issues and challenges that remote learning system in the higher education sector in India has been encountering amidst this pandemic but also sheds light on ways to deal with them.Design/methodology/approachThe paper makes use of secondary sources of data along with descriptive and comparative approaches to examine the issues, challenges and way forward for a transition from face-to-face teaching to remote learning in the case of India.FindingsThe paper suggests that greater use of this alternative mode of learning can be made for checking “human capital deficit,” preventing loss of future earnings (because of loss of education) and also for preparing a future-ready digital workforce to surf the Industry 4.0 wave. Besides, this can help to achieve the goal of “Education for all” and Sustainable Development Goal 4 (SDG 4). Among others, concerted policies for bridging skill gaps, forging partnerships and following equity-oriented policies for ensuring learning outcomes seem to be the way forward for a resilient education system.Originality/valueAs per our knowledge, no such study on the use of remote learning covering the higher education sector in India amidst COVID-19 has been done so far.

Disability and the 2010 Equality Act

Medico-legal experts instructed to write reports for use in personal injury claims may be perplexed by the number of those instructions which ask for an opinion about whether the claimant is disabled. Orthopaedic experts may be concerned that labelling the claimant as disabled could be regarded as a somewhat pessimistic approach. However, lawyers seeking an opinion on this point do so for valid technical reasons which this article will explore. Therefore, the purpose of this article is to explain why lawyers so often ask medical experts whether they consider that the claimant can properly be described as disabled according to the criteria set down in the 2010 Equality Act. It is hoped that this will enable medical experts to appreciate the significance of an opinion on this point, particularly so far as estimating claims for future loss of earnings is concerned. After outlining what might be described as the traditional method of calculating future loss of earnings, the article will turn to the modern method increasingly being adopted by the courts in appropriate cases and will seek to explain why the concept of disability is so important to that methodology. It is hoped that this analysis will help to explain why so many medico-legal instructions now raise the question of disability and will help to put such instructions into proper context. Where an injured person has continuing symptoms, even if these are not particularly significant, this may be important in terms of their future employability and may have a bearing on their future earning potential. There are, of course, cases where the injuries have an immediate, and continuing, effect on earnings and employment prospects. A more insidious problem is that encountered by the injured person who gets back to work (perhaps doing the same job) but is likely to face …

The Development of an actuarial approach to calculate damages for loss of future earnings

The current practice of Malaysian courts in calculating the award of damages for loss of future earnings in personal injury and fatal accidents claims is the conventional multiplier–multiplicand approach without admitting any actuarial evidence. The objective is to calculate an appropriate amount to compensate the plaintiff which will restore to the position he would have been in if that particular damage had not occurred. This article attempts to develop actuarial models using the concept of human life value that can be used as a guide to determine the amount of loss of future earnings. We believe this is where actuarial scientists need to play a role in developing a new scientific model in order to acquire an appropriate amount of award, which is relevant and satisfy both plaintiff and defendant.

Secure and reliable routing protocols for heterogeneous multihop wireless networks

In this paper, we propose E-STAR for establishing stable and reliable routes in heterogeneous multihop wireless networks. E-STAR combines payment and trust systems with a trust-based and energy-aware routing protocol. The payment system rewards the nodes that relay others’ packets and charges those that send packets. The trust system evaluates the nodes’ competence and reliability in relaying packets in terms of multi-dimensional trust values. The trust values are attached to the nodes’ public-key certificates to be used in making routing decisions. We develop two routing protocols to direct traffic through those highly-trusted nodes having sufficient energy to minimize the probability of breaking the route. By this way, E-STAR can stimulate the nodes not only to relay packets, but also to maintain route stability and report correct battery energy capability. This is because any loss of trust will result in loss of future earnings. Moreover, for the efficient implementation of the trust system, the trust values are computed by processing the payment receipts. Analytical results demonstrate that E-STAR can secure the payment and trust calculation without false accusations. Simulation results demonstrate that our routing protocols can improve the packet delivery ratio and route stability.

The divergent approaches of English and South African courts, when considering actuarial expert testimony in the matter of an award for damages for future loss of earnings after a damage-causing event

AbstractThis paper analyses the driving forces behind the willingness of South African courts to hear actuarial expert testimony in even the most simple of cases, in contrast to the more circumspect approach of the English courts, when assessing the damages arising out of future loss of earnings following a damage-causing incident. The analysis may well add insight to members of other professions and scientific communities that provide expert testimony to the courts. It is argued that English substantive law of damages and those influenced by its application have something to gain from a consideration of the approach in South Africa.

Implication du rapport Dintilhac dans l’expertise neuropsychologique

Implication du rapport Dintilhac dans l’expertise neuropsychologique

Calculating Compensation for Loss of Future Earnings: Estimating and using Work Life Expectancy

SummaryWhere personal injury results in displacement and/or continuing disability (or death), damages include an element of compensation for loss of future earnings. This is calculated with reference to the loss of future expected time in gainful employment. We estimate employment risks in the form of reductions to work life expectancies for the UK workforce by using data from the Labour Force Survey with the purpose of improving the accuracy of the calculation of future lifetime earnings. Work life expectancies and reduction factors are modelled within the framework of a multiple-state Markov process, conditional on age, sex, starting employment state, educational attainment and disability.

Cost of injuries from a prospective cohort study of North Carolina high school athletes

Objective:To estimate the economic cost of injuries in a population of US high school varsity athletes.Design and Setting:The North Carolina High School Athletic Injury Study, conducted from 1996 to 1999,...

Loss of Earnings Following Personal Injury: Do the Courts Adequately Compensate Injured Parties?

The law provides that any person injured through the fault of another can claim monetary compensation in the form of damages. This study focuses on compensation paid for loss of future earnings and the fact that little use has been made of economic analysis by courts in Britain in determining such damages. This is in contrast both to what happens in the US and to the extensive use made in British courts of experts from other disciplines. A comparison of awards adjudicated in British courts with a US‐style approach reveals substantial and systematic under‐compensation under the English legal system.

On selection of the discount rate for actuarial assessment of damages in personal injury litigation in Hong Kong

When assessing future pecuniary loss in personal injury litigation, courts often award a lump sum amount to compensate the plaintiff for future loss of earnings and to cover future expenses. The discount rate is essential to the actuarial calculation of the award. It is the rate of interest the claimant can be expected to achieve on the lump sum before it is used up. Conventionally, the Hong Kong Courts followed the United Kingdom authorities in many judicial decisions. The Lord Chancellor has recently set the discount rate at 2.5 per cent per annum. However, the Lord Chancellor’s decision was based on the economic conditions of the United Kingdom, not of Hong Kong. This paper examines, both theoretically and empirically, the proper discount rate in the context of Hong Kong’s local circumstances. We conclude that a rate of 3.5 per cent per annum is more appropriate for Hong Kong.

Court Awards of Damages for Loss of Future Earnings: An Empirical Study and an Alternative Method of Calculation

This article examines the effect upon damages for personal injury of methods used in the United States of America to calculate loss of future earnings. The work of lawyers is examined from the perspective of labour economists. The damages calculated by using these alternative methods are compared with those actually awarded in over a hundred cases determined by courts in England and Wales. This interdisciplinary and comparative study reveals that the tort system fails to satisfy one of its main objectives in that it does not provide recipients of damages with ‘full’ compensation.

The Culver-Pfeifer-Monessen Trilogy: A Legal Economic Note

Abstract An amount to cover a future loss of earnings is more valuable to the plaintiff if he received the amount today than if he received the same amount in the future. Therefore, if you decide to award plaintiff an amount for lost future earnings, you must discount it to present value by considering what return would be realized on a relatively risk-free investment. (From Section 4.12 of the pattern jury instructions of the U.S. 5th Circuit Court of Appeal)

Woolf, the adversarial system and the concept of blame.

Woolf, the adversarial system and the concept of blame.

Actuarial Assessment of Damages in Personal Injury Litigation in Hong Kong: Chan Pui Ki (an Infant) v Leung on

Case note: Actuarial assessment of damages in personal injury litigation in Hong Kong: Chan Pui Ki (an infant) v Leung On. When assessing future pecuniary loss in personal injury litigation, courts often use the multiplicand/multiplier approach. The objective is to calculate a lump sum amount to compensate the plaintiff for future loss of earnings and to cover a stream of future expenses.

Optimal Prices of an M/G/1 Jobshop

This paper concerns the optimal control of input to a FIFO jobshop with a single workstation. The input is jobs for which the processing and delivery times are observable upon arrival. The control is exercised by charging a price for each completed job. The objective is either profit maximization or welfare maximization. The semi-Markov decision processes that maximize the two objectives are studied simultaneously. Optimal prices are specified in terms of opportunity costs. The opportunity cost of a job is the expected future loss of earnings caused by having the job submitted to the shop. Results for the cases with and without discounting are established simultaneously by a new approach. It is based on the idea of studying the infinite-horizon model directly and it allows the state space and the decision set to be denumerable. Mild assumptions ensure that the opportunity cost is increasing as a function of the work backlog, and increasing and convex as a function of the processing time.