Damages vs Compensation
Damages and compensation are terms frequently heard in relation to personal injury and libel cases in law courts. Victims of accidents are awarded damages to compensate for physical and emotional losses, as well as to compensate for loss of income due to absence from work. Lawyers present their clients’ suffering in a strong manner so that the jury awards compensation for the wrongdoing of the guilty party. The words damages and compensation have been used almost interchangeably by not only the general public but also by attorneys, causing confusion. This article will explore the differences between the two terms.
Key Takeaways
- Damages provide monetary compensation to a person from a law court for injuries or losses suffered due to the wrongdoing or guilt of another person. They can be awarded for physical, emotional, and psychological injuries.
- Compensation is a concept that seeks to redress injustice or wrongdoing to a person by providing them monetary help or assistance from the guilty party. It is a legal right of all those who have been wronged or suffered losses due to guilt or lapse of another person.
- While damages are not always compensatory in nature, there are types of damages awarded to deter an individual from committing a crime again or for contempt of court that are not compensatory in nature.
Damages
Damages is a concept that provides for monetary compensation to a person from a law court for injuries or losses suffered by them due to the wrongdoing or guilt of another person. Damages are not just for loss of limbs or other physical injuries; they are also awarded for emotional and psychological sufferings, such as in cases of rape or when there is damage to a person’s reputation in a libel case.
Damages are not uniform and can vary greatly depending on the loss suffered by the victim, their age, gender, and income levels. There are also punitive damages that are charged from defendants in criminal cases to deter them from committing a criminal act again. However, it is compensatory damages that have always been a subject of debate because of the manner in which lawsuits are being filed to claim exorbitant sums of money as damages. There are also punitive damages, contemptuous damages, and even aggravated damages that are not compensatory in nature.
Compensation
Compensation is a concept that seeks to redress injustice or wrongdoing to a person by providing them monetary help or assistance from the guilty party. Compensation is a legal right of all those who have been wronged or suffered losses due to guilt or lapse of another person, whether it is injuries suffered from an automobile accident or damage to the skin caused by a beauty treatment at a salon. In fact, a person who receives treatment for injuries or diseases at a hospital and their symptoms aggravate or they develop new symptoms that can be traced to any lapses or faulty treatment procedures adopted by doctors or nurses is liable to be compensated for their suffering.
Any financial claim presented in a law court and awarded by the jury to the victim is labeled compensation. Individuals who suffer from injuries received in road accidents receive compensation from not only their insurance companies but also from the party that has been found guilty of rash driving.
What is the difference between Damages and Compensation?
• Damages are monetary awards given to victims of accidents to compensate for the losses suffered by them, whether physical, emotional, or financial.
• Compensation is a concept that attempts to redress any wrongdoing to an individual or any losses suffered by them due to the guilt of another person in monetary terms. It is an attempt to make amends or express sorrow to the victim.
• Damages are not always compensatory in nature, as there are damages awarded to deter an individual from committing a crime again. There are also damages charged for contempt of court that are not compensatory in nature.
