It is quite widely-known that people who have been injured are entitled to claim a financial settlement if another party was at fault. However, a lot of people never claim the compensation they are legally entitled to, and often this is down to a general lack of understanding on any deeper level. One thing that many people are often unclear on is exactly what a compensation payment is for, and what it represents.
The answer to this works on two different levels, because compensation payments are designed to represent two different forms of justice for the injured party. Both of these will be taken into account when calculating the total amount that should be awarded as a result of an accident at work claim or any other kind of personal injury case.
Reimbursement for Expenses
Part of the purpose of compensation is to reimburse you for expenses that have been incurred as a result of your injury, as it is considered only fair that these expenses are met by the person who caused your injury and was at fault. Examples of expenses that might be incurred in this way are any costs associated with medical treatment, such as the cost of having prescriptions filled, and losses incurred as a result of being unable to work. More serious and longer-term injuries may also require you to make adaptations to your home in order to accommodate a reduced level of physical ability, or assistance from private carers. These are also expenses that could be considered for reimbursement when calculating the amount of compensation that is due to you.
Compensation for Suffering
The other purpose of financial compensation is to serve as, quite simply, compensation. In other words, it is designed to make up, at least on some level, for the suffering that your injury has caused. Of course, in many cases no financial settlement could really make up for this, particularly in cases where accidents have resulted in a long-term or permanent disability or even death. Nonetheless, a compensation payment is designed to go some way – as far as reasonably possible – towards making amends for pain and suffering. In some cases, such as where a household’s major wage-earner is permanently unable to work or even deceased, this aspect of the compensation payment is also intended help ensure the financial security of the claimant or claimants in a more general way than the part of the settlement that relates to specific expenses.