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

Compensation and damages are both forms of recovery in an accident claim, however, there are differences between them. Compensation refers to reimbursement for a financial loss that results from an accident. This might include property damage, medical bills, lost wages, etc. Compensation is meant to restore an individual to the financial situation they would have been in had the accident not occurred. Damages, on the other hand, refer to a form of monetary award that a court might grant to a victim of an accident in North Carolina. These damages are sought as compensation for non-economic losses such as pain and suffering, emotional distress, and loss of companionship. The purpose of damages is to help the victim recoup losses that cannot be recouped through compensation. In North Carolina, awards of damages are made with consideration to the type of injury, the severity of the injury, the cost of the injuries, and proof that the negligent party is responsible for causing the injury. In some cases, a third party may be found at fault for the accident, and they may be liable for compensating the injured party. In summary, compensation in an accident claim is meant to restore an individual to the financial position they would have been in had the accident not occurred, while damages are a form of monetary award that a court might grant to an injured party to compensate them for non-economic losses.

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