Original scientific paper

https://doi.org/10.7307/ptt.v32i2.3195

Cost of Production Loss for Long-term Disability due to Road Crashes

J. Iñaki De la Peña orcid.org/0000-0002-7478-5571 ; University of the Basque Country (UPV/EHU)
Miguel A. Peña-Cerezo ; University of the Basque Country (UPV/EHU)
Olga Fotinopoulou ; University of the Basque Country (UPV/EHU)

Abstract

Traffic accidents leave lifelong after-effects and if the victim is disabled, they produce a production loss due to the differential in income that will be lost. This average value is very divergent in European countries, although there is consensus on cost components and valuation methods. However, many countries have legally standardised financial compensation so that it is calculated objectively and equitably for all those affected. This paper sets out the procedure for standardising the lost production cost of incapacitated road accident victims. An actuarial methodology relating to known inputs (age and salary) is used to obtain economic compensation for lost productivity. General principles and hypotheses are provided, and cases that require particular valuation are located. The standard cost thus calculated allows a homogeneous, fair and equitable compensation for all those involved in similar circumstances.

Keywords

Hrčak ID:

236592

URI

https://hrcak.srce.hr/236592

Publication date:

15.3.2020.

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