Compensation

Because compensation consists of monetary payment in exchange for damages, the manner in which compensation is distributed is determined by the nature of the incurred losses. Damages sustained by a person as a result of being given a potentially harmful medication will be considerably different from those sustained by a person as a result of having their vehicle vandalized.

Damages, on the other hand, can be divided into two primary categories:

Financial Damages

This type of damage is frequently referred to as “special damages.” It is possible to mention any type of financial loss that the victim endured; however, popular examples include auto repair expenses, medical fees, lost wages, or the actual loss of money if a person was scammed in any way.

Because they can be measured in terms of monetary value, these losses are straightforward to calculate. And when the victim is paid the damages, it is genuinely compensation since the money they are given replaces the money they lost and “makes them whole” in various ways.

Other Types of Losses

A painful injury is a common example of another type of loss. It’s possible that money could cover the costs of hospitalization, but that wouldn’t make the suffering and discomfort go away. And if the harm will have long-term repercussions, the financial compensation will never be enough to undo that.

However, the courts award monetary compensation for the aforementioned types of damages, which are sometimes referred to as “general damages.” The line of thinking behind this is that even if the damage can never be undone, the victim should still receive some sort of compensation to make up for what has been done to them.

There are many cases that involve both types of damages, and you are eligible to receive monetary compensation for both of them.