What are non‑economic damages?
Non‑economic damages are compensation for permanent and significant traffic injuries of a medical nature. They compensate for loss of enjoyment of life that cannot be measured financially and are intended to offset the disadvantages the injury causes you. This compensation does not depend on your financial loss, additional expenses, or similar factors. If you suffer injuries that limit your enjoyment of life, non‑economic damages are intended to enable you to purchase experiences that improve your quality of life.
Who is entitled to non‑economic damages after a traffic injury?
If you have suffered a permanent personal injury as a result of a traffic accident, you may be entitled to non‑economic damages. You may be entitled as a driver or passenger, but also if you were a pedestrian or cyclist who was struck.
What types of injuries qualify for non‑economic damages?
You may receive non‑economic damages for both physical and psychological injuries.
The traffic injury must be significant. This means it must be of a certain severity for you to be entitled to non‑economic damages. The extent of the injury, referred to as the degree of medical disability, determines the amount of compensation. This is separate from any financial loss you may have suffered as a result of the injury.
You must have permanent injuries to be entitled to non‑economic damages. By permanent injuries, this normally means injuries that you must live with for at least 7–10 years.
Your injury must be of a medical nature. This means that you must have suffered a physical injury to the body or a psychological injury. For example, a knee prosthesis, amputation of an arm, or post‑traumatic stress disorder (PTSD) may give rise to entitlement to non‑economic damages.
The fact that non‑economic damages do not depend on financial loss means that even if you have suffered a permanent and significant medical injury but are still able to work full‑time, you may still be entitled to non‑economic damages.
How much non‑economic damages can I receive?
The amount of non‑economic damages you receive depends on your age, the degree of permanent medical disability assessed in your case, and the National Insurance basic amount (G) at the time the compensation is paid. The insurance coverage you have will also affect how much you receive.
Good to know – insurance companies usually cover legal costs in traffic injury cases.
You may be entitled to non‑economic damages from more than one insurance company or through different insurance policies within the same insurer. If you are involved in a traffic accident, whether as a driver, passenger, cyclist, or pedestrian, you may be entitled to non‑economic damages from the insurance company of the vehicle responsible for the accident. In addition, you may be entitled through your own insurance policies, such as travel insurance or personal accident insurance. This can be difficult to keep track of, and we are happy to help you with this.
When can non‑economic damages be paid after a traffic injury?
If you have suffered a traffic injury and your condition has stabilised, it may be assessed whether you are entitled to non‑economic damages as a result of the accident. A stabilised condition means that you have undergone the necessary medical treatment and rehabilitation. Sufficient time must also have passed since the accident to allow the injuries to heal. We usually say that an injury is stabilised when you are no longer improving or deteriorating. The traffic injury has reached its best possible condition.
Normally, at least one year must pass from the date of injury before the extent of the injury can be assessed, and often two years should pass after a traffic accident. The required time depends on the type of injury and rehabilitation needs. For head injuries, it is generally recommended that at least two years pass before assessment.
Once the injury has stabilised, a doctor (specialist) can assess the injuries you sustained in the traffic accident. The specialist prepares a specialist report in which your injuries are evaluated. The specialist then determines your permanent medical disability based on the extent of the injuries caused by the traffic accident.
If the permanent medical disability exceeds the minimum threshold set out in your insurance policy, you are entitled to payment of non‑economic damages. Normally, permanent medical disability must exceed 15% in order to qualify for non‑economic damages following a traffic injury.
Can I choose the specialist?
Yes, you may take part in deciding who prepares your specialist report.
The specialist who assesses your injuries and determines your medical disability can have a significant impact on whether – and how much – non‑economic damages you receive. Even though permanent medical disability is assessed using a table, a considerable degree of professional judgement is involved. People differ, and so do specialists.
In insurance cases where a specialist report is required, you and the insurance company normally decide jointly who will prepare the report. The insurance company knows which specialist it prefers. Do you?
Our experience is that the choice of specialist is one of the most important factors in an insurance case. This is a decision you can and should influence. We have more than 30 years of experience with traffic injury cases and specialist selection. Let us help you make the right choice.
What is permanent medical disability?
Medical disability refers to the consequences the injury has had for you – that is, the specific physical or psychological functional impairment. Permanent medical disability is expressed as a percentage. Ideally, the same injury should result in the same degree of medical disability. This means that an objective assessment of your injuries should be carried out.
How is permanent medical disability determined?
A specialist examines you and prepares a specialist report in which they assess whether there is a causal connection between the traffic accident and your symptoms, and determine permanent medical disability.
Doctors have different areas of medical specialisation. If you have suffered a head injury, a neurologist will usually conduct the examination and determine medical disability. If you have suffered a neck injury (whiplash), a specialist in physical medicine may assess the medical disability.
When preparing the specialist report, the specialist is provided with your medical history, usually covering several years prior to the traffic accident. This is to assess whether you had similar symptoms before the accident, whether the symptoms are new, or whether pre‑existing symptoms have worsened.
The specialist reviews all documentation to assess whether there is a causal connection between your current traffic injuries and the accident that occurred. This is evaluated based on your medical records. What symptoms did you have immediately after the accident? Have the symptoms persisted?
If your injuries do not resolve after the traffic accident, you should consult a doctor or healthcare provider regularly to document that the symptoms are the same as those caused by the accident. Your medical records will be crucial evidence in the case.
Once the specialist has examined you and reviewed all documentation, they prepare a specialist report. If they conclude that there is a causal connection between the accident and your symptoms, the specialist determines your degree of permanent medical disability. This is expressed as a percentage and is determined in accordance with the invalidity table set out in regulations. Read more about the invalidity table here.
Payment and calculation – what am I entitled to in non‑economic damages after a traffic injury?
Much of the calculation of non‑economic damages following a traffic injury is standardised. The compensation is assessed based on the permanent medical disability determined by the specialist in the specialist report.
The compensation is calculated based on the degree of permanent medical disability, expected remaining life expectancy, and the National Insurance basic amount (G). Non‑economic damages after traffic injuries are paid as a lump sum, unlike occupational injury cases where payments may be made monthly by NAV.
Under motor liability insurance, permanent medical disability must exceed 15% to qualify for non‑economic damages. If you were a driver or passenger, you are usually also covered by driver and passenger accident insurance, which provides compensation from 1% permanent medical disability. You may also have other insurance policies that provide entitlement to payment from 1% permanent medical disability.
Under motor liability insurance, non‑economic damages are assessed in groups.
- Permanent medical disability below 15% gives no entitlement to non‑economic damages
- Permanent medical disability of 15–24% = non‑economic damages group 1
- Permanent medical disability of 25–34% = non‑economic damages group 2
- Permanent medical disability of 35–44% = non‑economic damages group 3
- Permanent medical disability of 45–54% = non‑economic damages group 4
- Permanent medical disability of 55–64% = non‑economic damages group 5
- Permanent medical disability of 65–74% = non‑economic damages group 6
- Permanent medical disability of 75–84% = non‑economic damages group 7
- Permanent medical disability of 85–100% = non‑economic damages group 8
Significantly more severe injuries than 100% permanent medical disability give rise to non‑economic damages group 9.
How do you apply for non‑economic damages after a traffic injury?
In traffic injury cases, there is no formal application process for non‑economic damages in the same way as for occupational injury cases. Once the injury has stabilised and it becomes clear that there are permanent traffic injuries of a certain severity, the issue of non‑economic damages is discussed with the insurance company. As a rule, we agree with the insurance company on a specialist who will determine entitlement to non‑economic damages.
Legal assistance
Settlement of traffic injury cases in general, and non‑economic damages in particular, is governed by a complex regulatory framework. Many factors influence the compensation amount, but the most important is the specialist report, which has the greatest impact on the amount you will receive. Choosing the right specialist who can provide an accurate report for your injury profile is therefore crucial. We know who to choose. Many people hesitate unnecessarily to seek legal assistance in such cases. However, insurance companies are obliged to cover reasonable and necessary legal costs. Speak to us, and we will ensure that you receive the compensation you are actually entitled to.
