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

Research output: Contribution to journalArticle

Abstract

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.

Original languageEnglish
Pages (from-to)95-106
Number of pages12
JournalLaw, Probability and Risk
Volume15
Issue number2
DOIs
Publication statusPublished - Jun 2016

Keywords

  • Actuarial
  • Fatal accident
  • Human life value
  • Personal injury

ASJC Scopus subject areas

  • Philosophy
  • Statistics, Probability and Uncertainty
  • Law

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