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4.9 Calculating the Amount of Economic Loss
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Calculating the amount of economic loss can be tricky and each case will need to be determined on its own merits.
The delegate must consider the following factors and nothing else:
1. The financial loss suffered by the dependant as a result of the death
2. The length of time that the dependant would have been dependent on the deceased employee.
It is important to remember that the death lump sum is compensation for loss of economic support and does not compensate for emotional distress as a result of the death.
Things to consider when establishing economic loss:
- The income of the deceased employee
- The financial position of the deceased employee and their spouse i.e. if they have joint debts - mortgage, car loans etc, payment of bills
- Whether dependants will be left in the care of the spouse
- Age of dependants
- Amount of Child Support payments the deceased made to dependants plus any other additional payments i.e. school fees, gifts etc.
- Length of time these payments to dependants would have continued
- Percentage of care of dependants and the costs associated with that care i.e. food, clothing, entertainment