The Schedule of Compensation

We explain what the schedule of compensation is and what role it plays in accident insurance

2020-04-23
Carina

Definition: What is the schedule of compensation in accident insurance?

The schedule of compensation is used to calculate the degree of disability. It is, so to speak, a means of calculating how much money you will receive if you have an accident and suffer long-term physical or mental injury. For each individual body part and sensory organ, it states which percentage of the base sum will be paid out in case of loss or loss of use.

What do the percentages in the schedule of compensation table mean?

The percentages refer to how severely someone is restricted in their everyday life if they lose the use of the body part or sensory organ. In this way, the schedule of compensation allows you to calculate the degree of disability. For example, someone who has lost their little finger is not as restricted as someone who has lost a leg. That is why the schedule of compensation for a leg, at 70%, is significantly higher than the compensation for a little finger, which is only 7%.

What is the schedule of compensation used for?

The schedule of compensation is the basis for calculating the degree of disability. The degree of disability ultimately decides how much money the insured person receives from their accident insurance. It is calculated as follows: degree of impairment × schedule of compensation. This sounds more complicated than it is: In case of a total impairment, which can result from paralysis or amputation, the degree of disability corresponds with the figure stated in the schedule of compensation. So if the function of a hand is impaired by 50%, which means that it is only half as capable as before, then the percentage for a hand in the schedule of compensation (70%) is halved, resulting in a 35% degree of disability. Here’s a summary of this calculation:

  • Schedule of compensation for a hand: 70%
  • Degree of impairment: 50%
  • Degree of disability: 50% x 70% = 35%