Adjustment of Compensation for Loss of Earnings Using Future Wage Forecasts
DOI:
https://doi.org/10.15678/ZNUEK.2016.0949.0103Keywords:
annuity, compensation, personal finance, personal injuredAbstract
The compensation that should be given to injured individuals is made up of several elements. When the victim is unable to work, income he or she has lost is compensated. To properly establish that compensation, two factors are considered: time value of money and the rate of growth of wages in the sector where the victim worked. Inflation should also be figured in. The article presents simulations of different approaches – ones that do not take these factors into account, and others that do. The first approach is often used by the Polish justice system in determining the amount of pension compensation, while the second is a proposal to better protect victims who have lost the ability to work.
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