Can AI Be Used To Value A Personal Injury Claim?

I recently asked a junior colleague to value a Client’s claim for me. I also asked them to use AI to see how the figures compared to how we usually value claims.

A Case Study

My client suffered a number of serious injuries as a result of a fall down a flight of stairs during the course of his employment. He sustained multiple orthopaedic injuries to his back, neck and both legs. He also sustained an adverse psychological reaction. He required surgery to his knee as well as psychological treatment. In addition, he incurred loss of earnings and private medical expenses amongst other out of pocket expenses. There was also likely to be future loss of earnings following the surgery.

Liability had been accepted by the defendant’s insurer. I had started obtaining the medical evidence to support the case. Treatment was also underway with further treatment still being required when an offer was received by the defendant.

I asked a junior colleague to consider the offer and value the claim using AI. The valuation bracket that was given having used AI was so large that it was in effect unhelpful. In this particular case, what was more important than the potential settlement figures was understanding the implications of settling the claim and in particular when the claim should be settled. The offer was also vague in terms of future treatment needs and this needed to be clarified before any potential settlement.

My advice was that the offer should not be accepted at this time. I explained to my client how claims are valued and the many factors that need to be taken into account when considering a valuation and settlement of the claim. The offer was not accepted and my Client continued to pursue his case.

How are claims valued?

There are various types of damages to consider;

General damages is the compensation for the pain, suffering and loss of amenity. General damages are based on the medical evidence and a valuation bracket is reached by using the Judicial Studies Guidelines as well as considering case law. Where there are multiple injuries or pre-existing symptoms, claims are more difficult to value.

Special damages are the losses and expenses incurred as a result of an accident, such as loss of earnings, medical and travel expenses. There may be a subrogated claim to consider as well.

Future losses may include future care and medical expenses and loss of earnings.

Factors to consider when negotiating settlement

AI is not going to be able to provide any legal advice or general advice on strategy.

Some claims are straightforward when it comes to settling particularly if the Claimant has made a full recovery and therefore there are no future treatment needs and no future losses to take into account. A valuation bracket is reached and negotiations take place with the defendant in order to agree a settlement.

Often, however, there may be many other factors to consider which will affect the overall settlement, such as;

1. Whether liability has been accepted
2. Whether court proceedings been issued or whether limitation is approaching
3. Whether a trial date has been set
4. Whether contributory negligence has been raised
5. Whether the Claimant has made a full recovery
6. Whether future treatment is needed

In the case study detailed above, the Claimant had not made a full recovery and knee surgery was required. A decision had to be made as to whether to accept the offer and settle the case or wait until the medical evidence was complete after the surgery had taken place.

My advice was that the offer received was too low. In addition, I advised my Client to go ahead with the planned surgery and then reassess his injury at a later date to determine whether a full recovery had been made within the prognosis period provided by the medical expert. This would also in turn help to determine future loss of earnings and any other treatment needs. Only when the full extent of an injury is known can an claim be accurately valued. The claim was also still at a relatively early stage so there was no urgency to settle. AI is not going to be able to fully advise a Client on all aspects of a settlement.

Summary

Whilst AI may be able to explain certain elements of a settlement award, such as the types of damages (ie the compensation for the injury, losses and expenses, future losses etc) and the factors that might influence a settlement, AI does not replace a qualified solicitor. AI cannot accurately value a claim, advise a client what settlement figure should be accepted or provide legal strategy.

AI might be able to provide some useful information but it should never be relied upon.

For tailored advice on Personal Injury claims including valuing or settling a claim, please contact our specialist Personal Injury team on 0330 822 3451 or request a callback.