Wednesday, April 9, 2008


Calculation on Loss of Earnings

The Multiplier

There are three factors which should be considered in determining the multiplier in calculating the amount of damages are age of deceased, status or relation of claimant and duration of the needed support. As per Section 7(3)(iv)(d) of Civil Law Act 1956. The calculation for multiplier will be as below:-

Deceased age between 31 years – 54 years:-
= (55 – [Age at the of accident]) ÷ 2
= (55 – [35 years old]) ÷ 2
= 10 years loss of earnings or support

The Multiplicand

Dependencies who have suffered with actual loss of dependency during death of the contributor; so that support must be given and used exclusively on the dependant and it includes money and money’s worth such as services rendered to family relationship. It was decided in the case of Chan Chin Ming v Lim Yok Eng (1994) 3 MLJ 233 where revision made under Section 7 Civil Law Act 1956.

The assessment of Multiplicand as below:-

For an example if the deceased age between 31 years – 54 years

The calculation on the amount of loss of earnings:-

= ([Net Income per month-Living Expenses]) x 12mth x [(55–Age at the of accident) ÷ 2 ]
= [RM 900.00 – RM 100.00] x 12 months x 10 years
= RM 96,000.00

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