Loss-of-Support Compensation

Loss of support: entitlement and assessment

A death may cause financial loss to people who relied on the deceased’s income or services. Loss-of-support compensation concerns the contribution expected to continue had the person lived. The support relationship, liability and resulting loss require an individual assessment.

Legal basis and purpose

Article 53(3) of the Code of Obligations covers losses suffered by people deprived of the deceased’s support. The claim concerns their own loss, rather than merely an inherited right. Support can include care and household services as well as money.

Who may claim?

A spouse, child, parent or another person may claim by establishing an existing or reasonably expected support relationship. Kinship alone is neither always sufficient nor invariably required. The central questions are support and its loss.

Household work, care and regular assistance may have economic value. Expected future contributions are assessed against age, education, family circumstances and the ordinary course of life; the same assumptions cannot be applied to everyone.

The claimant’s own income or assets do not, by themselves, eliminate a loss of support. The effect of inheritance, social-security benefits and insurance payments depends on their legal character.

What informs the calculation?

An award of social-security benefits, an insurance payment and a court’s assessment of damages are distinct processes. Their legal basis, scope and interaction must be examined separately.

Diversity in Calculation Methods and the Supreme Court Approach

The choice of actuarial method must be considered alongside the applicable law and judicial assessment. The main distinctions include:

Progressive annuity: known past earnings are distinguished from future assumptions. Whether the approach commonly described as a 10% annual increase and 10% discount is appropriate must be assessed in the particular case.

Methods using technical interest discount future support to present value. Rates and tables are not automatically applicable: the accident date, legislation and scope of relevant annulment decisions must be checked.

Average-earnings and fixed-annuity approaches use different income and future-support assumptions. A method’s name alone does not establish that the calculation is legally appropriate.

An expert report should explain its data, formula and assumptions. The court assesses it against the evidence and applicable law; legal decision-making does not belong to the expert.

Parameters Considered in Compensation Calculation

1. Income: the deceased’s actual earnings and contribution are investigated. Payroll, tax, occupational and comparable-income evidence may be relevant. Any assumption used where income cannot be proved requires justification.

2. Age and duration: the ages and life expectancies of the deceased and claimants, education and family circumstances are considered. The choice of a table such as PMF-1931 or TRH 2010, and any allowance for remarriage, depends on the case.

3. Periods: the period assessed using known data from the event to the calculation date is separated from future loss. Income and support assumptions should be stated for each.

4. Retirement: support is not necessarily tied to paid employment. The economic value of care and assistance expected to continue in retirement may also be relevant.

Payment Method and Discount Discussion

The difference between a lump sum and recurring support makes future assumptions important. The payment form and calculation must be assessed under Articles 51 and 55 and the circumstances of the case.

The Role of Expert Witness and Lawyer

A sound calculation requires more than arithmetic. Proof of support, permissible deductions and the scope of liability are legal questions distinct from the technical calculation.

Preparing a claim

Bring together income and support evidence, family records, medical and death records, and details of payments already made. Missing or inconsistent data should be identified in the calculation report.

A standard percentage or online calculator cannot establish a final award. Support, liability, calculation data and time limits must be examined in each case.