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Compensation for Those Indirectly Affected by the Death of a Household Member


This article demonstrates the size of the budget gap that arises in a household after the death of that member who was the breadwinner of the family. It also describes how this gap can be covered by motor vehicle liability insurance. One source of funding for this gap could be, for example, an annuity for indirect victims. In many EU countries, people who are members of the household of the deceased are considered to be affected as a result of his death. Those indirectly affected will include the family members and relatives of the deceased (spouse, parent, child, sibling, and cohabitant). The person responsible for the death should pay compensation to the family members of the deceased. One of the elements determining this compensation should be the loss of income to the family of the deceased. The second element is compensation for the lost personal contribution. This paper presents the study of literature as an introduction to the relevant issues. The problem of compensation for lost income will be illustrated by legal regulations and calculations based on the account actuarial-term annuity. The study focuses on the selected EU countries. This article is part of a broader study by the author on the material consequences of personal injury and sources of their financing.

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