Insurance companies cannot determine the cut-off point between compensation for lost income due to occupational injury and future loss of income

A helicopter pilot became disabled due to health issues he developed at work and was entitled to occupational injury compensation for lost income and future loss of income.

Compensation for lost income and future loss of income is calculated separately. Compensation for lost income is determined on an individual basis, while future loss of income is a standardised compensation. For high earners, the standardised compensation can result in undercompensation. Therefore, the way the distinction between the calculation of the two types of losses is drawn can be very significant. For the pilot, the difference amounted to several million kroner.

Under ordinary tort law, the cut-off point – the settlement date – is the date when the parties agree on the settlement, or, in case of disagreement brought before the courts, the date of the judgment.

The question in the Supreme Court was whether the Regulations on standardised compensation allow the insurance company to set a different settlement date by paying the standardised compensation, thereby making the payment date the settlement date.

The Supreme Court found that the settlement date, also under the Regulations, is the date of the agreement or the date of the judgment. There is no indication that the legislature intended to make an exception from ordinary tort law.

The ruling provides guidance on the calculation of compensation for lost income due to occupational injury.

Read the judgment from the Supreme Court (Norwegian only) (PDF)

Areas of law: The Occupational Injury Insurance Act, tort law 

Key paragraphs: 27, 41, 51, 53–55

Justices: Falkanger, Ringnes, Sæther, Stenvik, Lund