Settling a fatal accident claim: an introductory guide

The loss of a loved one due to another party’s negligence is devastating. Alongside the emotional impact, families are often confronted with complex legal and financial consequences. When the deceased individual was responsible for a contribution towards their household’s income, worrying about how the family will be able to cope financially in the future can create additional stress in an already exceedingly difficult time. 

A fatal accident claim allows dependants and the deceased’s estate to seek compensation for these losses. This compensation is not designed to, and will never replace, the person they have lost, but these claims can provide long term financial security for families. This article outlines how such claims are approached, valued, negotiated, and resolved.

Understanding the legal basis for a fatal accident claim

In England and Wales, the compensation that can be claimed in fatal accident claims is primarily governed by two key statutes:

a) The Law Reform (Miscellaneous Provisions) Act 1934

This allows the estate of the deceased to claim for losses arising out of the negligence that the deceased person could have claimed for had they survived, such as:

• pain and suffering before death;
• financial losses incurred before death, for example, loss of income through being unable to work.

b) The Fatal Accidents Act 1976

This allows for dependants to claim for losses flowing from the death itself, including:

• loss of financial dependency;
• loss of services dependency (eg, childcare, DIY, domestic contribution);
• funeral expenses;
• a statutory bereavement award (available to limited categories of claimant).

These two parts together form the basis of most fatal accident claim settlement discussions. There are strict criteria as to who can bring claims on behalf of an estate and who should be regarded as a dependant, but the loss of one individual can result in claims for several family members.

Investigating and resolving liability

The first steps involved in bringing a claim focus on establishing liability and an entitlement to damages. This process starts with looking at how the individual came to die, and on what basis it can be said that this was due to the acts or omissions of another individual  or entity – what they did, or did not do. Sometimes this is a straightforward process, but often there can be complexities in establishing exactly what led to an individual’s death, and who was at fault.

Once the claim has been investigated and there are felt to be grounds to pursue a fatal accident claim against a particular defendant (or defendants), then it will be presented to the defendant(s) – who will usually have insurance in place to deal with the claim.

In some cases, liability is resolved/admitted early, and the parties can then proceed with valuing the claim and entering settlement negotiations. Sometimes, however, it can take time to reach the stage where liability is resolved and there is an entitlement for the estate/dependants to recover damages.

Assessing the value of a fatal accident claim

Valuation in fatal injury cases is one of the most detailed areas of personal injury practice. Key elements include assessing both financial dependency and loss of services:

a) Financial dependency

This is the most significant part of many claims. It considers the extent to which others were dependent on the deceased person for financial provision, and includes an assessment of:

• the deceased’s net income and the relative contribution of that to the household’s income;
• their likely career progression/change/retirement age (to gain an understanding of what the deceased’s income would have looked like in the future);
• the proportion of income used for family versus personal expenditure;
• the duration of dependency (how long dependants could have expected to remain financially dependent on the deceased, which is defined by the life expectancy of both the deceased and their dependants).

b) Loss of services

This includes the practical contributions the deceased made to family life, such as:

• childcare;
• household tasks;
• transport;
• DIY, gardening, maintenance.

These services are valued by estimating the commercial cost of replacing them.

Bereavement awards and funeral expenses

A bereavement award is a statutory award payable to a narrowly defined group (spouse, civil partner, cohabiting partner for at least two years, and parents of a minor). This is a fixed amount under legislation. At the time of writing, this award is currently £15,120.

In addition, in most cases, there is scope to recover funeral expenses (subject to some limitations).

Other damages

There are some other specific damages that can be claimed for close family members, representing the loss suffered. However, such sums are usually nominal.

Very thorough investigations are required in order to assess and value such claims – often including expert financial evidence (forensic accountancy) and expert evidence from care experts looking at the replacement cost of services. These claims always require a detailed investigation of how the family household operated, as well as future plans, had the bereavement  not occurred.

Settling a fatal accident claim

In most cases, the claimant’s solicitors gather all the required evidence to value the fatal accident claim, and then present it, along with supporting evidence, to initiate negotiations – and most cases do result in a negotiated settlement. Common areas of dispute usually surround the likely future plans and life expectancy of the deceased, but the claimant’s solicitors will typically have good evidence to support their approach.

In some circumstances, the settlement must be approved by the court – this is required where any of the dependants, and/or the individual acting for the estate, lack capacity to litigate, and are a protected party.

Pursuing and successfully resolving a fatal accident claim requires a careful balance of legal expertise, analytical skill, and empathy. Every family’s circumstances are unique, and the valuation of financial and service dependency often involves complex long-term projections. With the right support, however, the process can provide clarity, accountability, and financial security at a profoundly difficult time.