Special Damages: Insurance Claims Explained

Special damages refer to objectively assessed monetary compensation for quantifiable, tangible losses, such as wage loss, loss of use, nursing care, and medical expenses. They are awarded to an injured party in a civil lawsuit. The exact definition depends on the area of law and/or jurisdiction. In tort law, special damages refer to damages like car dents or medical expenses that can be easily ascertained and contrasted with general damages, which refer to damages for things like emotional distress that do not have a set monetary cost. In contract law, special damages refer to irregular damages such as physical injuries during a breach of contract.

Medical expenses

The full cost of medical treatment is usually reimbursed, regardless of any discounts or insurance adjustments. For example, if an insurance company negotiates a reduced rate with a hospital, the injured party is still entitled to claim the full, pre-discounted amount as part of their special damages. This difference between the billed amount and the amount paid by insurance is often referred to as the "spread."

Future medical expenses may also be included in special damages. If ongoing treatment or future procedures are required, a doctor's letter outlining the expected costs of future care is typically needed to include these expenses in the claim. These future costs are then discounted to a present value for the damages claim.

Special damages for medical expenses are typically calculated based on past medical bills and future treatment estimates provided by medical professionals. They are considered economic damages because they have precise dollar amounts associated with each item, making them easier to calculate compared to general damages.

It is important to note that special damages are distinct from general damages, which compensate for intangible losses, such as pain and suffering, emotional distress, and loss of consortium, which do not have specific monetary values attached to them.

Loss of earnings

Special damages refer to objectively assessed compensation for quantifiable, tangible losses incurred by an injured party due to someone else's negligence. These damages are economic in nature and reimburse specific expenses. Wage loss, also known as loss of earnings, is a key component of special damages.

In the context of insurance, special damages are relevant when an individual files an insurance claim or lawsuit to recover monetary compensation for harm suffered due to the negligence or deliberate act of another party. This includes scenarios like car accidents, where the injured party may claim special damages for lost earnings in addition to other expenses such as medical bills and property damage.

It is important to distinguish between special damages and general damages. While special damages cover specific expenses, general damages compensate for intangible losses that do not have a set monetary cost. General damages include emotional distress, mental health issues, physical impairment, and loss of consortium.

In some cases, the line between special and general damages can be blurry, especially when it comes to future loss of earnings. Claiming future loss of earnings can be challenging as it opens up room for rigorous cross-examination of the claimant's work history and the speculative nature of projected losses. As such, attorneys may opt for a future loss of earning capacity claim, which focuses on the reasonable value of the loss to the plaintiff rather than requiring proof of definite future earnings.

Property damage

The legal term "special damages" has multiple meanings depending on the area of law and/or jurisdiction. This response will focus on special damages in the context of property damage.

In tort law, special damages refer to compensation for expenses incurred due to another party's negligence or wrongdoing. Special damages are also referred to as economic damages because they reimburse the injured party for specific, quantifiable expenses. In the context of property damage, special damages can include:

• Reimbursement for repairs to damaged property
• The cost of replacing property that cannot be repaired
• The cost of renting a substitute property while damaged property is being repaired
• Reimbursement for unique or irreplaceable items damaged or destroyed

For example, if someone's property is damaged in a car accident due to another driver's negligence, they can claim special damages for the cost of repairing or replacing their property. Additionally, if they need to rent a substitute vehicle while their damaged car is in the shop, the rental car expenses can also be claimed as special damages.

Special damages are typically calculated based on the actual monetary value of the property damage. This can be determined by consulting resources like the Kelley Blue Book for vehicles or similar valuation tools for other types of property. The goal is to restore the injured party to the financial position they were in before the incident occurred.

It is important to note that special damages are distinct from general damages, which compensate for intangible losses that do not have a specific price tag, such as pain and suffering, emotional distress, or loss of consortium. General damages are often more challenging to calculate due to their subjective nature.

Funeral costs

In addition to funeral and burial costs, other related expenses may also be claimed as special damages. For example, if there are medical bills incurred during the deceased's final days, these can be included. Furthermore, if the death was a result of a car accident, any damage to the vehicle or personal property inside may also be claimed.

It is important to note that special damages are distinct from general damages, which compensate for non-monetary losses, such as pain and suffering, emotional distress, and loss of companionship. General damages are more challenging to calculate due to their subjective nature, whereas special damages are based on specific amounts that can be verified through invoices and receipts.

To ensure a successful claim for funeral costs as special damages, it is crucial to maintain detailed records of all expenses and seek the assistance of a knowledgeable personal injury attorney. They can help navigate the legal process, calculate the total special damages, and guide you in obtaining the compensation you are entitled to.

Cost of living with a disability

The legal term "special damages" has varying meanings depending on the area of law and jurisdiction. In tort law, special damages refer to economic damages with a set monetary cost, such as car dents or medical expenses. In contract law, special damages refer to irregular damages, such as physical injuries during a breach of contract.

Now, let's focus on the cost of living with a disability:

People with disabilities often face higher costs of living than those without. These additional costs can create a significant financial burden, impacting their standard of living and ability to participate in society. Disability can affect anyone at any stage of life and can range from mild to severe physical, sensory, mental, or intellectual limitations.

The extra costs associated with living with a disability can be substantial, ranging from US$1,170 to $6,952 per year in some countries. These costs include higher medical expenses, personal assistance, assistive devices, transportation, and modified housing. For example, a person with a disability may need to spend more on a wheelchair or hearing aid, which can be costly. They may also have to pay for modifications to their home to improve accessibility, such as installing ramps or widening doorways.

Transportation costs can also increase for those with disabilities. They may need to rely on specialised transportation services or live in specific neighbourhoods closer to accessible services, which can limit their housing options and increase their living expenses.

The severity of a person's disability, their life stage, and household composition can all influence the financial impact. For instance, individuals with severe disabilities or those living alone may incur higher costs.

In recognition of these additional costs, some countries provide benefits to support individuals and families with disabilities. For example, the federal government in the United States offers a cost-of-living adjustment (COLA) to Social Security disability insurance (SSDI) and SSI disability benefits recipients. The COLA aims to ensure that inflation does not erode the purchasing power of these benefits. However, there is ongoing debate about the adequacy of these adjustments, with some arguing that the increase should be higher to better reflect the impact of inflation on seniors and individuals with disabilities.

To address the financial challenges faced by people with disabilities, researchers recommend gathering more comprehensive data on disability, income, assets, and expenditures across different countries. This information can inform the development of targeted social programs and income tests that take into account the extra costs associated with living with a disability.

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