Compensation for bereavement (Published 04/08/05)

The question of how much compensation the bereaved should receive has been in the news again this week. Is any amount of money the right answer?

Legally, if you are in an accident you are entitled to compensation for lost earnings. So if you are off work for a month that's a months pay, and so on. If you are paralysed for life whilst still in your thirties, that could be 30 years' money, which is quite a substantial sum all in one go. If the accident kills you, then in theory you have still lost the money so you should still get it, even if it is your nearest and dearest who get to enjoy it rather than you.

This sounds good in theory. But the problem is that sometimes your nearest and dearest are not very near or very dear. So for them it’s just a nice windfall at the expense of a bit of your disaster. And that doesn't look too attractive to most onlookers. So the law tries to strike a balance. If you really were dependant on the deceased for material support, then you can have the money. But if you were not, you cannot benefit. Instead you get a token payment of a few thousand pounds.