Kapitalisatie van schade
Capitalisation of damages
Converting future heads of damage into a single lump sum, taking interest and duration into account. Applied for permanent injury and long-term loss of income.
Capitalisation of damages
Capitalisation is the method by which future heads of damage — such as permanent loss of income, future care costs or loss of self-reliance — are converted into a single sum the victim receives now. The legal basis is Article 6:97 of the Dutch Civil Code (BW); Article 6:105 BW allows future damage to be assessed on the basis of an estimate.
Main features
Practical consequences
Capitalisation is central to the final settlement of injury cases with permanent consequences. A discount rate that is too low leads to a higher capital sum; one that is too high works out unfavourably. An independent calculation agency or actuary often performs the calculation. Parties may also opt for periodic payments, but capitalisation offers a definitive settlement and legal certainty.
“After the traffic accident the victim's future loss of income was capitalised into a lump sum of €320,000, so the liable insurer could settle the case definitively.”
Source: AI
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