View random article

What Are Compensatory Damages?

Compensatory damages are aimed at compensating the victim or an injured person involved in an incident resulting from irresponsible actions by another. Compensatory damages would only be possible after taking into consideration the extent of damage or loss done.

Usually, there are certain factors taken into account if compensation is given to a victim. These are pain experienced by the victim either mentally or physically, disability scars, and even financial losses. Compensatory damages are being asked from the defendant to compensate on permanent disability, medical bills, property repair or replacement and even to emotional suffering and distress and certain kinds of suffering.

One example of a circumstance where compensatory damages may be asked is during a vehicular accident. Specifically, the compensatory damages in this example refer to compensatory money damages since compensation is done through the provision of money. This occurs when one person gets involved in an accident that leads to his or her car wreckage. In this case, compensatory damages could equal the price of the car enough for him or her to purchase a new one.

On the other hand, if such accident occurs due to negligence or was intentionally done, the equal market value alone would be reimbursed or given although this may not be enough for one to purchase a new vehicle. This is because the person involved could have acted responsibly and could have avoided such accident. This summarizes that compensation damages are only applicable to those who are truly affected such that they did not want the accident to happen. Instead, they got into the accident due to the irresponsible acts of other people which caused harm to them.

Featured in Finance