Traffic Accident Compensation: Know The Law

The law of damages -or torts in other jurisdictions- exists for the sole purpose of compensating people who suffer loss or injury as a result of other people actions, negligent or otherwise. In order to determine the amount of traffic accident compensation payable by the wrongdoer, the law considers a number of factors.

Contributory Negligence

Besides the fact that a motor vehicle insurance policy is mandated to cover medical expenses and repair costs, it does occur often that a plaintiff somehow contributes to a motor vehicle accident. In such instances, the principle of contributory negligence takes into account a plaintiff’s degree of fault as a way of reducing the amount payable.

Compensating Advantages

The collateral source rule -rule on compensating advantages- again seeks to reduce the amount payable by considering benefits which accrue to a plaintiff as a result of an accident. For example, if someone -relative or friend- opts to pay for medical expense out of sheer generosity, this will result in double compensation if an insurer pays. Such an advantage is usually considered in reducing the damages recoverable.

Considerations such as the aforementioned are important in line with principles of fairness as a defendant is not always liable to pay for all loss or injury eventuated by the damage causing event.