The computational interest rate plays a crucial role in determining compensation in a personal injury case. It is a financial factor used to calculate future damages. This is particularly relevant in cases of long-term or permanent damages, such as loss of income or healthcare costs that extend over several years.
Free consultationArithmetic interest is the difference between the returns you can get from investing or saving compensation, and the inflation that affects the value of the money. Simply put, it is an interest rate used to convert future claims into an amount paid out today.
The computational interest rate is important because damages in long-term personal injury cases are often paid in a lump sum. This should take into account:
The discount rate is set based on economic developments and expectations. In the Netherlands, it is the recommendation of the Dutch Legal Committee for Human Rights (NJCM) and other parties that is used as a guideline. These recommendations are reviewed annually to ensure that the actuarial interest rate is in line with the current economic situation.
For 2024, interest rates and inflation are recommended as follows:
| Period | Interest | Inflation |
|---|---|---|
| 0-5 years | 1,5% | 2,0% |
| 6-30 years | 2,0% | 2,0% |
| >30 years | 2,0% | 2,0% |
The discount rate has a direct impact on the amount of damages. With a lower actuarial interest rate, future damages are assessed higher because inflation and low returns have more of an impact. This means you can receive higher compensation to fully cover future costs.
Example:
If you have a personal injury claim that includes long-term damages, such as loss of income, healthcare costs or pension damages, the arithmetic rate is an essential part of the calculation. Therefore, it is important to hire a specialist who is familiar with current guidelines and economic trends.
An experienced personal injury lawyer can:
Are you involved in a personal injury case and want to learn more about how computational interest affects your compensation? Get in touch with us. Our specialists are ready to help you determine the right compensation so you can look to the future without financial worries.
As an accident victim, not only do you have a lot of worries, but you often incur additional costs immediately; that does not help you focus on your recovery. Fortunately, the legislature in the Netherlands has arranged that hiring a personal injury lawyer in these cases does not cost the victim anything. The costs – like the rest of the compensation – must be paid by the liable party. So you don’t have to claim your legal assistance insurance, for example, but may go directly to a specialized personal injury lawyer. No matter how big or small the damage seems to be.
We do not use the popularly popular ‘no cure, no pay‘ system, because in that case, as a victim, you still have to hand over a percentage of your compensation; that is not necessary at all. We send our bill directly to the other party so that you do not have to pay anything.
Get in touchYou are entitled to compensation for damages resulting from a traffic accident. We will help you recover these damages. Contact us today. We will discuss what we believe is the best strategy to get fair compensation as quickly as possible. This is as follows.
An understanding of the facts is necessary to hold the right party liable.
With a legally sound story, we hold the person(s) responsible liable for your damages.
Then we can work with you to estimate the damages and make sure you get fair compensation.
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