How are income benefits calculated in the Tort system?

Income benefits in the Tort system are calculated based on the earnings that an individual received prior to the accident. This approach takes into account the actual income level of the injured party, which ensures that the compensation reflects their pre-accident financial situation. This method is intended to fairly compensate individuals for lost wages due to their inability to work as a result of injuries sustained in an accident.

The rationale for this calculation is grounded in the principle of restoring the injured party to their financial position before the incident occurred. By focusing on prior earnings, the system aims to provide a more personalized and accurate compensation that correlates with each individual's unique earning potential rather than applying a one-size-fits-all approach.

Other options describe methods that do not align with the principles of the Tort system. For example, fixed amounts for all workers would overlook the individual circumstances of each case, while regional variations could lead to inconsistencies and potential unfair treatment in compensation. Similarly, linking benefits to the severity of the injury rather than actual earnings could create disparities that do not reflect the financial impact of lost income. Thus, basing income benefits on pre-accident earnings is foundational to ensuring equity in the compensation process.