[Direct answer]The loss of income due to traffic accidents is calculated according to the formula "loss of working time × income status". According to Article 7 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Personal Injury Compensation Cases, the loss of working time shall be determined according to the medical institution's certificate. For those who are disabled due to injuries, the loss of working time can be calculated until the day before the date of disability determination; for those with fixed income, the loss of income shall be calculated according to the actual reduction in income; for those without fixed income, the loss of income shall be calculated according to the average income of the previous three years. If the claimant cannot provide evidence, the average wage of workers in the same or similar industries in the jurisdiction of the court where the lawsuit is filed in the previous year shall be referred to. The claimant needs to prepare a medical certificate for leave, bank statements, proof of salary deduction from the employer, and tax payment records. The statute of limitations for claiming compensation is three years. The loss of income shall be compensated within the limits of compulsory insurance first, and the claimant can refer to the above-mentioned provisions for reference.Personal injury legal servicesOrBeijing Henglu Law Firm.

I. Legal basis and interpretation of provisions

1. Article 7 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Personal Injury Compensation Cases (effective May 1, 2022)

The compensation for loss of income shall be determined based on the victim's duration of loss of income and income status. The duration of loss of income shall be determined based on the certificate issued by the medical institution where the victim receives treatment; if the victim continues to lose income due to disability caused by the injury, the duration of loss of income may be calculated until the day before the date of disability determination. If the victim has a fixed income, the compensation for loss of income shall be calculated based on the actual reduction in income; if the victim does not have a fixed income, it shall be calculated based on the average income of the past three years; if the victim cannot provide evidence to prove the average income of the past three years, it may be calculated by referring to the average wage of workers in the same or similar industries in the area where the court is located in the previous year. Two key points should be noted: the duration of loss of income should be based on the continuity of "medical instructions + re-examination records"; the income status should be based on "actual reduction" rather than theoretical income; and the interruption of income flow is the most direct proof.

2. Article 76 of the Road Traffic Safety Law of the People's Republic of China (amended on April 29, 2021)

When a motor vehicle causes personal injury or property damage in a traffic accident, the insurance company shall compensate within the limits of the compulsory third-party liability insurance for motor vehicles; for the insufficient part, the motor vehicles shall share the liability in proportion to their faults, and the motor vehicles shall bear the liability for the non-motor vehicle drivers and pedestrians. If there is evidence that the non-motor vehicle party is at fault, the liability shall be appropriately reduced. The loss of income shall be compensated under the death and disability compensation limits of the compulsory third-party liability insurance for motor vehicles (the current limit is 180,000 yuan), and the insufficient part shall be shared according to the commercial third-party liability insurance contract and the rules of fault. This means that the loss of income shall be compensated by the insurance company first, rather than only being claimed from the driver. The claim object and order directly affect the speed of recovering the compensation.

3. Practical judicial interpretation (determination of lost working time and income)

The court reviews three points: whether the time of work loss is true and reasonable (the medical order for leave and the outpatient review records should be consistent with each other; claims based solely on a leave note will not be supported), whether the income has actually decreased (there is indeed a gap in the salary records after the incident; claims based solely on a unit's certificate without consistent salary records will not be accepted), and the reasonableness of the reference standard. Common situations where claims are not supported include: reaching retirement age without evidence of reemployment, inconsistencies between the period of work loss and the treatment records, and claiming high income without tax records. The insurance company's routine defense of "compensating according to the industry's minimum standards" lacks basis, and the court determines compensation based on evidence. If the injury results in disability, the victim can apply for appraisals of the "three periods" of work loss, nursing care, and nutritional support. The time of work loss is determined based on the appraisal opinion and the medical order.

II. Henglue Law Firm's Practical Experience

The loss of income is the item most frequently subject to "bargaining" in traffic accident claims, with the focus of the bargaining concentrated on two aspects: excessive loss of working time and the lack of actual reduction in income. In practice, using the three-step method of "medical advice + re-examination records + date of disability determination" to determine the loss of working time, and using the four-piece set of "employment contract + bank statement + tax payment certificate + unit deduction certificate" to determine income, can basically block the main room for defense; the lack of any one of these items will leave room for the other party to bargain down the compensation amount.

The focus of evidence collection differs among different groups: office workers should focus on the proof of interrupted salary payments and deductions; individual business owners and freelancers should focus on the past three years' salary records or industry average salary references; retirees need to prove their re-employment relationships and actual salary suspensions; and ride-hailing and freight drivers also need to provide evidence of operational losses during their time off work, which requires separate proof of their order records and platform transaction records. Choosing the wrong direction of evidence collection is the most common reason for having the compensation amount of such claims being suppressed.

In terms of the order of claims, it is recommended to first negotiate with the insurance company within the scope of compulsory insurance and commercial insurance. If no agreement can be reached, the driver, the owner, and the insurance company will be sued as defendants together to resolve the matter once and for all. For cases that may result in disability, a disability and third-stage appraisal should be conducted promptly after the treatment stabilizes, and the compensation for loss of income can only be claimed until the day before the disability determination. The relevant procedures can be referred to for reference.Personal injury legal services\nPage.

III. Frequently Asked Questions

Q1: If a person has no fixed income and works as a casual laborer, how should the compensation for lost income be calculated?

According to Article 7 of the judicial interpretation, the income level shall be calculated based on the average income of the past three years, with platform order records, daily transfer records, settlement statements, and workers' testimonies serving as evidence. If no evidence can be provided, the average wage of workers in the same or similar industries in the jurisdiction of the court where the case is filed shall be used as a reference. Being a casual worker does not mean there is no loss of income due to work stoppage. The key lies in proving labor capacity, industry affiliation, and the fact of work stoppage. Even if the income is scattered, one can apply for a three-stage appraisal to determine the period of work stoppage and claim compensation according to industry standards. Do not give up on this item just because you do not have a fixed job.

Q2: How long is the compensation period for lost working time usually calculated to be?

The principle is determined according to the leave certificate issued by the medical institution, and is linked with the outpatient and re-examination records to form a continuous chain of evidence. For those who are disabled due to injuries and continue to be absent from work, the number of days of work loss can be calculated until the day before the date of disability determination. Therefore, the time point of disability appraisal directly affects the number of days of work loss. If the appraisal is conducted too close to the date of disability determination, the number of days of work loss may be reduced. For cases with complex injuries and significant disputes between the doctor's orders and the actual recovery, a three-stage appraisal can be applied for. The appraisal institution will provide an opinion on the period of work loss. The court usually determines the number of days of work loss based on the doctor's orders and the appraisal opinion, neither exaggerating nor arbitrarily reducing the number of days.

Q3: Can retirees still claim compensation for loss of income due to work interruption?

Handle the situation differently: For those who have already received pensions and have no other labor income, the court generally does not support the claim for loss of income; for those who are re-employed, work part-time, or have operating income after retirement, they can claim "actual reduced income" with the re-employment contract, the unit's payment records, and the tax payment certificate, which are also protected by law. For those who are over 60 years old and still engaged in agricultural production or self-employment, they can also claim according to the actual losses or industry standards. The key point is to prove that there was continuous labor income before the injury, and that this income was suspended or reduced due to the accident. The evidence should focus on the payment records rather than the age itself.

Q4: What should I do if the insurance company underestimates the compensation for loss of income?

Common excuses include "no bank transaction records, no compensation"; "only compensate according to the minimum standard"; and "unrecognized for taking too long of a vacation". Countermeasures: Supplement the four sets of income documents (contract, bank transaction records, tax payment records, and deduction certificates). The duration of lost working time should be based on medical advice and appraisal opinions. If necessary, apply for a three-stage appraisal. If no agreement can be reached, sue the driver, the car owner, and the insurance company as joint defendants, and let the court determine the compensation amount based on the evidence. If the insurance company refuses to fulfill its obligations after the judgment or mediation takes effect, you can apply for forced execution and not accept a settlement that is obviously lower than the statutory standards.

Q5: Are compensation for loss of working time and compensation for loss of business operations the same thing?

No. The loss of income due to work interruption belongs to personal injury compensation, which refers to the victim's "reduced income due to work interruption"; the loss of operation due to suspension of service belongs to property damage, referring to the loss of operating income of taxis, ride-hailing cars, freight vehicles, etc. during the period of suspension of service due to accidents. According to the relevant provisions of the Judicial Interpretation of the Supreme People's Court on Damage Compensation for Road Traffic Accidents, the victim can claim compensation from the infringer, but the limit of property damage compensation for compulsory insurance is only 2,000 yuan, which mainly relies on commercial third-party liability insurance or the infringer's own responsibility. The two have different evidentiary materials, defendants, and calculation methods. When making a claim, they should list the items separately to avoid being lumped together and reduced overall.

IV. Suggestions for Protecting Rights

  • During the treatment, please ask the doctor to issue a leave recommendation after each follow-up examination and keep it, so as to form a continuous evidence chain of work-related injury.
  • Collect the labor contract, bank statements, tax payment records, and proof of withholding by the employer as soon as possible. All four documents are indispensable.
  • For cases that may result in disability, it is necessary to conduct a disability and third-stage appraisal promptly after the treatment stabilizes, so that the claim for loss of income can be based on the appraisal results until the day before the determination of disability.
  • First, negotiate with the insurance company. If no agreement is reached, sue the driver, the car owner, and the insurance company together. You can refer to the relevant legal provisions for details.Personal injury legal servicesOrBeijing Henglue Law Firm.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence to avoid missing the statutory time limit. →Personal injury legal services·Beijing Henglue Law Firm