Multiplicand

The multiplicand is the yearly income figure used as the base for calculating a future loss, before the multiplier is applied.

Malaysian courts generally use the claimant’s or the deceased’s earnings at the time of the injury or death, not a projected future salary. They then deduct the person’s own living expenses. The result is the annual sum treated as lost each year.

Proving it depends on real records such as payslips, tax filings or business accounts. A court cannot value future loss from an estimate alone.

How future earning capacity is worked out explains how the multiplicand and the multiplier combine. An independent lawyer can gather these records and put them to the insurer when a serious injury or death affects income.