Consolation money for an injured victim

Consolation money for a injured victim

In traffic accident cases in Japan, a responsible party has to compensate for all the victim’s losses. Besides, only in the following circumstances, the responsible party has legal duty for not only compensating for their losses but also for paying consolation money for their pain and suffering.

(1) The victim was dead

(2) The victim was injured

(3) The victim was left with residual disability

As you can see, the consolation money is never for property damages in Japan. The Consolation money is for pain and suffering the victim got in the traffic accident. In other words, it is money for the victim’s mental burden. In this article, we take a closer look at case (2): Consolation money for the injured victim. 

(About the other two cases, you can see the following articles: Consolation money for a dead victim, and Consolation money for residual disability)

Calculation of consolation money for injured

For calculating the consolation money, there are three standards in Japan: Attorney’s standard, CALI’s standard, and voluntary insurance company’s standard. Each of the standard shows a different extent of money. So, that is one of the reasons why both parties sometimes fail to agree in a phase of settlement. In the following, we take a closer look at each of these three standards.

Attorney’s standard

Attorney’s standard shows the highest amount of money of all the three standards. It’s based on past precedents and made by attorneys consulting with judges. So, it basically shows the amount which the court will admit if you file a suit. If you are an injured traffic accident victim, it’s better to start with the amount calculated based on this Attorney’s standard. 

Only Attorney’s standard has a table of consolation money as follows:

(Unit: JPY1,000)

  Hospitalization
(month)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Comuuting to hopitals
(month)
- 53 101 145 184 217 244 266 284 297 306 314 321 328 334 340
1 28 77 122 162 199 228 252 274 291 303 311 318 325 332 336 342
2 52 98 139 177 210 236 260 281 297 308 315 322 329 334 338 344
3 73 115 154 188 218 244 267 287 302 312 319 326 331 336 340 346
4 90 130 165 196 226 251 273 292 306 316 323 328 333 338 342 348
5 105 141 173 204 233 257 278 296 310 320 325 330 335 340 344 350
6 116 149 181 211 239 262 282 300 314 322 327 332 337 342 346  
7 124 157 188 217 244 266 286 304 316 324 329 334 339 344    
8 132 164 194 222 248 270 290 306 318 326 331 336 341      
9 139 170 199 226 252 274 292 308 320 328 333 338        
10 145 175 203 230 256 276 294 310 322 330 335          
11 150 179 207 234 258 278 296 312 324 332            
12 154 183 211 236 260 280 298 314 326              
13 158 187 213 238 262 282 300 316                
14 162 189 215 240 264 284 302                  
15 164 191 217 242 266 286                    

(The table is officially referred in a book of Compensation Standards of Civil Traffic Accident Lawsuit in Japan, which is also called as “the red book.”)

According to the above table, if you are hospitalized for one month and commute to a hospital for two months, you have a right to receive JPY980,000. (See 98 in the table colored by red.)

If you visit a hospital twice a week for one month, you can refer to the amount shown under one month in the table. If you visit a hospital only once a week, the amount might be about 30% decreased to the amount in the table. If you visit a hospital only once a month, the amount might be about 70% reduced. Namely, the amount shown by the table is not fixed, but it depends on how often you commute to a hospital.

CALI’s standard

CALI has its standard when calculating consolation money for the pain and suffering of the injured victim. Since CALI’s upper limit of payout is JPY1,200,000. Consolation money can be calculated only if the amount of the victim’s losses is under JPY1,200,000.

It usually pays out JPY4,200 per day as consolation money. For multiplying, you have to take a lesser number from the following:

(1) The number of the month you visited a hospital (If it’s one month, use the number of 30. If it's two months, use 60.)

(2) Twice the number of days you practically visited a hospital (If It’s ten days, it’s 20 days.)

Voluntary insurance company’s standard.

The voluntary insurance company’s standard is not officially disclosed. Each company has its own standard for the calculation. However, it’s clearly lower than the Attorney’s standard, so one of the reasons why settlement between an at-fault party and victim fails is due to the difference. Like Attorney’s standard, the consolation money increases as the number of days you commute to hospitals or you’re hospitalized increases.

What is the best standard for you?

If you are an injured victim, use the Attorney's standard because it shows the highest amount which the court will admit. The responsible party's insurance company, on the other hand, will suggest a lower amount referring to their standard. So, in a settlement process, you and the other party might negotiate and try to seek a compromised proposal with each other.

In the case where the at-fault party doesn't have financial ability to compensate, CALI's payout might be your last hope. In that case, use CALI's standard for the calculation of consolation money.

In any of the cases, what standard you should use, or how to calculate it depends on every single case. It is wise to consult with professionals trying car accident cases. We, Senryaku Corp., have tried many traffic accident cases for more than ten years. We have knowledge and wisdom derived from our long years' experiences. If you have any concerns or questions about the calculation of consolation money, please do not hesitate to contact us as follows:

 
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