What is the difference between compensation and damages in an accident claim?

Compensation and damages are two separate types of awards that may stem from an accident claim in Alabama. Compensation is an award of money that is paid directly to an injured person to cover their expenses and losses resulting from the accident. This can include medical bills, lost wages, and other out-of-pocket expenses. Damages are an award of money that is paid to the injured person to compensate for non-economic losses, such as pain and suffering, emotional distress, and loss of quality of life. Compensation is an award meant to put the injured person back in the financial position they were in before the accident, while damages are an award meant to compensate for intangible losses. In cases of personal injury, compensation is generally intended to cover medical expenses, lost wages, and other economic losses, while damages are meant to cover non-economic losses, such as pain and suffering, emotional distress, and loss of quality of life. It is important to note that while compensation and damages are two separate types of awards that may stem from an accident claim, sometimes they are awarded as a lump sum. In such cases, the lump sum must be appropriately allocated in order to ensure that all areas of compensation and damages are properly accounted for.

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What is the difference between compensation and damages in an accident claim?

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