Pain and suffering costs of persons in construction accidents: Hong Kong experience

D. Darshi De Saram and S. L. Tang

Construction Management and Economics, 2005, vol. 23, issue 6, 645-658

Abstract: Direct financial costs of accidents are the tip of the iceberg when compared to the indirect costs. Notwithstanding the difficulties involved, it is very important to estimate the indirect costs borne by society, and the non-material losses due to pain, suffering and loss of enjoyment of life undergone by the victim. This study investigates the pain and suffering costs (non-material losses) of the victims of construction accidents in Hong Kong based on relevant High Court personal injury case judgements in the years 1999-2003. The 54 non-fatal accident cases and 14 fatal accident cases analysed indicate that the average percentage of compensation awarded for non-material damages (pain, suffering and loss of enjoyment of life) to that for material damages (loss of earnings, medical and travelling expenses, etc.) during those years is about 30%. This result enables estimating the pain and suffering costs of the society for a particular year if the total material losses of all construction accidents in that year are known. Based on previous research in which the material losses in Hong Kong were evaluated for the years 1999, 2000 and 2001, the corresponding pain and suffering costs could be estimated as 219 million, 150 million and 107 million Hong Kong dollars, respectively (US$1.00 = HK$7.80).

Keywords: Accidents; construction; costs; damages; Hong Kong losses; pain; suffering (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1080/01446190500039739

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