UsefulFAQs.com - What is Compensation?

In law, Compensation refers to the money paid or awarded as damages to a claimant (as it is known in the UK) or plaintiff (in the US) following their successful claim in a civil action.

Damages are paid, depending on one's perspective, to compensate the claimant for harm suffered or to enable the claimant to have monetary revenge. These are known as compensatory damages. Compensation is commonly awarded because of personal injury.

The most common type of personal injury claims are road traffic accidents, accidents at work, highway tripping accidents, assault claims, accidents in the home, and holiday accidents. Indeed, there are a multitude of types of accident and the term personal injury also incorporates medical and dental accidents (which lead to numerous medical and dental negligence claims every year) and conditions which are often classified as industrial disease cases. Industrial disease type cases include asbestosis and mesothelioma, chest diseases (e.g. emphysema, pneumoconiosis, silicosis, chronic bronchitis, asthma, chronic obstructive pulmonary disease, and chronic obstructive airways disease), vibration white finger, occupational deafness, occupational stress, contact dermititus, and repetitive strain injury cases.

Where the accident was the fault of someone else, the injured party may be entitled to monetary compensation from the person whose negligent conduct caused the injury compensation.