Compensation for Income Lost – Long-term Effects on the Victim's Personal Finance Cover Image

Compensation for Income Lost – Long-term Effects on the Victim's Personal Finance
Compensation for Income Lost – Long-term Effects on the Victim's Personal Finance

Author(s): Anna Jędrzychowska, Ewa Poprawska
Subject(s): Health and medicine and law, Victimology, Welfare services, Socio-Economic Research
Published by: Masarykova univerzita
Keywords: personal injuries; annuities; MTPL insurance; technical provisions;
Summary/Abstract: The purpose of the article is to estimate the consequences that can arise in the household of the injured person, when they discontinue to pay social security insurance contributions because disability caused by motor accident. If the accident causes inability to work arose from someone's guilt, the offender shall bear the cost to repair the damage. If the damage is long-term, this compensation should be based on the payment of annuity, where there can be used two concepts: lifetime annuity, the value of the first payment at the level of net salary of the injured person, term life annuity paid till retirement age, the value of the first payment at the level of the gross salary of the injured person (including contributions to retirement insurance) and indexed by eg. the rate of inflation. In the second case, it is assumed that the injured person receives greater amount and spend it on pension contributions. The authors will make a comparison, which of these two methods of compensation for lost income is more favourable for victims of different age categories from three European countries: Czech Republic, Germany, Poland.

  • Page Range: 278-285
  • Page Count: 8
  • Publication Year: 2016
  • Language: English