True or False: The severity of a pre-existing condition must be deducted to determine compensation when service connection by aggravation is established.

When service connection by aggravation is established, it is essential to consider the severity of the pre-existing condition when determining compensation. This is based on the principle that veterans should be compensated only for the increase in severity of their condition that is attributable to military service.

If a veteran's pre-existing condition was aggravated by their service, the amount of disability compensation awarded takes into account the degree to which the condition was worsened during service. Therefore, the severity of the pre-existing condition must be deducted from the total impairment. This ensures that compensation accurately reflects only the additional disability that stems from the aggravation due to military service, rather than the condition's original state prior to service.

In this context, evaluating the existing severity of the pre-existing condition is crucial to ensuring fair compensation for the veteran, which supports the accuracy of the assessment of their actual service-related health impairment. The answer aligns with the legal framework governing veteran’s compensation and the principles of equity in addressing service-related health issues.