16/8/2013

Use of Personal Injury Tables Determination of the Multiplier

Part A: Application of Tables

(a) Tables 1 and 2:

- The loss or expense is assumed to begin immediately and to continue for rest of the
claimants life.
- Apply to both the deceased and the dependants lives in fatal accident cases
(b) Tables 3 14:
- Loss or Expense is assumed to begin immediately but to continue only until the
claimants retirement or death.
- Age 50 (Tables 3 and 4); Age 55 (Tables 5 and 6); Age 60 (Tables 7 and 8); Age 65 (Tables
9 and 10); Age 70 (Tables 11 and 12); Age 75 (Tables 13 and 14)
(c) Tables 15 26:
- The annual loss or annual expense will not begin until the claimant reaches retirement
but will then continue for the whole of the rest of his life.
- Retirement at 60 (Tables 19 and 20) and similarly for other tables.
(d) Table 27: Discounting factors for term certain
- Factor to discount value of multiplier for a period of deferment
(e) Table 28: Multipliers for pecuniary loss of term certain
- Multiplier for regular frequent payments (eg weekly or monthly) for a term certain
- In cases where pecuniary loss is to be valued for a fixed period, where assumed that
regular frequent payments will continue throughout the period.

Part B: Determination of the rate of return

Chan Pak Ting and Chan Chi Kuen (No 2) HCPI 235/2011

- The Cookson v Knowles assumption of a net rate of return of 4.5% per annum was no longer valid in
Hong Kong (para. 1)
o Substantial change in the economic landscape economic indicators suggest
exceptionally low interest rate regime would continue for some time
- The decision will impact plaintiff claiming damages for personal injuries whose claims include claims
for future losses and future expenses. (para. 8)

For plaintiffs with future needs Net rate of return

Not exceeding 5 years (0 5) -0.5%
Not exceeding 10 years (6 10) 1%
Exceeding 10 years (>10) 2.5%

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Example 1

The following is an example of the use of the tables in a personal injury case:

The claimant is a female, aged 35 on the date of the trial. She is an established civil servant who was
working in an office at an annual salary of HK$360,000. As a result of her injury, she has lost her job and
will never be able to obtain employment for the rest of her life. Her loss of earnings to retirement age of
60 is assessed as follows:

(1) Look up Table 8 for loss of earnings to age 60 for females.

(2) Her future needs is retirement age deducted by age on the date of the trial (60 35) which is 25
years. As it exceeds 10 years, thus the appropriate rate of return is recommended to be 2.5%
(3) Table 8 shows that, on the basis of a 2.5% rate of return, the multiplier for a female aged at 35 is
18.51
(4) The damages for loss of earnings are assessed as HK$6,663,600 (18.51 HK$360,000)

Example 2

The following is a second example of the use of the tables in a personal injury case but this time
involving not only a total loss of earnings, but also the cost of future care:

The claimant is male, aged 60 on the date of the trial. He was working in a factory. His retirement age
was 65 and his pre-retirement multiplicand has been determined as HK$240,000 a year net of tax. The
multiplicand for costs of care is deemed to be HK$600,000 a year. As a result of his injuries, he has lost
his job and become totally unemployable. His loss of earnings to retirement age of 65 is assessed as
follows:

(1) Look up Table 9 for loss of earnings to pension age of 65 for males.
(2) His future needs is 5 years (65 60). Thus the appropriate rate of return is recommended to be
-0.5%.
(3) Table 9 shows that, on the basis of a -0.5% rate of return, the multiplier for a male aged 60 is
4.97.
(4) The damages for loss of earnings are assessed as HK$1,192,800 (4.97 HK$240,000).

This example takes no account of risks other than mortality. Adjustments of the multiplier could be
made by taking into account the factors described in para. 23 of Personal Injury Tables Hong Kong
2013.

(1) Look up Table 1 for multiplier at age 60.

(2) As the period affected exceeds 10 years, the appropriate rate of return is 2.5%.
(3) Table 1 shows that, on the basis of a -0.5% rate of return, the multiplier at age 60 is 18.01.
(4) No further adjustment is made for risks other than mortality.
(5) The damages for cost of care are assessed at HK$10,806,000 (18.01 HK$600,000)

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Part C: Summary of Personal Injury Applications

(1) Choose the appropriate table mainly working life to pension age or whole life and
appropriate sex of the claimant Part A
(2) Choose appropriate rate of return Part B
(3) Find figure under the column given against the age of trial of the claimant
(4) Adjust figure to take account contingencies other than mortality
(5) Multiply the annual loss or expense by that figure