Cost of Production Loss for Long-term Disability due to Road Crashes

  • J. Iñaki De la Peña University of the Basque Country (UPV/EHU)
  • Miguel A. Peña-Cerezo University of the Basque Country (UPV/EHU)
  • Olga Fotinopoulou University of the Basque Country (UPV/EHU)
Keywords: road crash, injury, disability, value of life, actuarial valuation


Traffic accidents leave lifelong after-effects and if the victim is disabled, they produce a production loss due to the differential in income that will be lost. This average value is very divergent in European countries, although there is consensus on cost components and valuation methods. However, many countries have legally standardised financial compensation so that it is calculated objectively and equitably for all those affected. This paper sets out the procedure for standardising the lost production cost of incapacitated road accident victims. An actuarial methodology relating to known inputs (age and salary) is used to obtain economic compensation for lost productivity. General principles and hypotheses are provided, and cases that require particular valuation are located. The standard cost thus calculated allows a homogeneous, fair and equitable compensation for all those involved in similar circumstances.


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How to Cite
De la Peña JI, Peña-Cerezo MA, Fotinopoulou O. Cost of Production Loss for Long-term Disability due to Road Crashes. PROMET [Internet]. 2020Mar.12 [cited 2020Sep.18];32(2):167-7. Available from: