Jaarschade
Annual loss (jaarschade)
Annual loss is the amount of damage per year, used as the basis for calculating and capitalising long-term or future personal-injury damage.
The annual loss ('jaarschade') is the damage a victim suffers per year as a result of the injury. It is a calculation unit used mainly for long-term or permanent heads of damage.
Typical components of an annual loss are:
The annual loss forms the building block for capitalisation: by multiplying the annual loss by a capitalisation factor (based on duration and the discount rate), future damage is converted into a single lump sum. A careful substantiation of the annual loss is therefore crucial for a correct final settlement.
“The calculation assumed an annual loss of €12,000 for loss of earning capacity.”
Source: handmatig
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