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Insurance Claims - Collecting Lost Wages
by: Dan Baldyga
A couple months ago you were toolin' on down the avenue, minding your own business, when out of nowhere, this fumbling, stumbling man by the name of Freddie Fuddle flew through a Stop Sign and plowed into you with a gigantic, rip-roaring, screeching broadside. You were wearing your seat belt but it was still a thundering crash that wrenched and whipped you around the inside of your motor vehicle something fierce!
Now, after a long recovery period, Fuddle’s carrier, Granite Mountain Insurance is clamoring to close the case and they've assigned Claims Adjuster I. M. Strong, to handle your case. You and Strong are sitting at your kitchen table talking about your settlement dollars. It turns out he’s got some hang-up’s regarding your lost income. Well, here are some things you need to know:
Lost wages are one of the most important element's of your damages. Listen to me carefully when I say, "You should not think about the days you missed from work as Lost Time and Earnings. It's not Lost Time and Earnings - - it’s Lost Earning Capacity“
You ask, “What‘s Lost Earning Capacity all about? I thought I could only collect for my Lost Income?” The answer to that is, “In many situations you can claim lost income EVEN IF YOU HAVEN'T LOST ONE SINGLE PENNY “. For example, this can happen when your salary is paid because you've elected to apply for the sick leave that‘s due you, or because of an Accident and Health Policy available for you to take advantage of, or some other such arrangement.
In most instances - - even if you were paid while out of work - - you should still get that money routinely identified as Lost Wages. Why? Because that's your Lost Earning Capacity. Your Lost Earning Capacity is what’s called a Compensatory Damage. Don't let Strong swindle you out of that Compensatory Damage. Even if you’ve received an income, in some other way, you're still entitled to it. Strong will do everything he can to take advantage of you, especially when it comes to getting paid for your Lost Earning Capacity. During the course of every settlement negotiation he gets involved in, he‘ll try that tactic on for size, and it’s mind-boggling how often he gets away with it.
The typical statement made at that point, by the unsuspecting claimant is, “Hey, I understand I’m to be paid for my lost wages.”
Strong answers, “You collected $200.00 a week from your Accident and Health Policy didn’t you?”
“Yeah, but my average weekly income last year was $275.00 a week.”
“Okay”, I. M. Strong flashes a well practiced, winning smile, that tells you he’s a fair insurance claim adjuster, when in his black heart, he knows he isn‘t, “We’ll pay you that $75.00 a week difference. Let’s see, you were laid up and unable to work for 5 weeks. 5 times $75.00 is $375.00. Don’t worry my friend, I’ll see to it you’re paid that $375.00.”
“Wow!” you think, “that’s terrific !.” You’re thrilled to death with this great turn of events. But what you don’t know is that the $200.00 a week you’ve received from your Accident and Health Policy has absolutely nothing to do with your lost income. The bottom line is that Smart has just cheated you out of a thousand dollars! And, worse than that, the $275.00 a week income you lost (for a total of $1,375.00) would have (in a court of law) given your case $4,000.00 to $5,000.00 more value in settlement dollars.
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