What's Your Life Worth?
News: Societal Cost Components for Fatalities, 1972 NHTSA Study
September/October 1977 Issue
Here is a chart from a federal study showing how the National Highway Traffic Safety Administration has calculated the value of a human life. The estimate was arrived at under pressure from the auto industry. The Ford Motor Company has used it in cost-benefit analyses arguing why certain safety measures are not "worth" the savings in human lives. The calculation below is a breakdown of the estimated cost to society every time someone is killed in a car accident. We were not able to find anyone, either in the government or at Ford, who could explain how the $10,000 figure for "pain and suffering" had been arrived at.
| COMPONENT | 1971 COSTS |
Future Productivity Losses
Direct
Indirect
Medical Costs
Hospital
other
Property Damage
Insurance Administration
Legal and Court
Employer Losses
Victim's Pain and Suffering
Funeral
Assets (Lost Consumption)
Miscellaneous Accident Cost |
$132,000
41,300
700
425
1,500
4,700
3,000
1,000
10,000
900
5,000
200 |
| TOTAL PER FATALITY: $200,725 |
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