Law

Things to know about money damages in car accident cases

In personal injury cases, the individuals who have been a victim of the accident have the right to receive compensations for all the damages that has been caused. Damages are of various types, out of which compensations for medical treatment is the most common. However, you can claim for both economic and non-economic. In this article, we will discuss about the some of the different types of money damages for which you can claim.

Compensatory damages are damages for which the court rewards certain amount of money to an individual who has suffered injuries or losses for negligence of a third party. Under this, the victim can be entitled to recover from two types of damages: General damages include compensation for pain and suffering and payouts which are given for lost wages, medical bills etc. falls under the category of special damages.

General damages- General damages are those damages in which compensations are given directly for the injuries of the claimant which is a result of the negligence of the third party. One of the greatest examples of this category is pain and suffering. However, it is difficult to quantify pain and suffering. Only the lawyers can determine it examining the gravity of the case and the seriousness of the injuries.

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Economic damages- It can be referred to the expenses that a victim has to make for suffering injuries after an accident. The victim can claim for these damages in a personal injury claim. The damages for which you are entitled to receive compensation are- vehicle repair, lost wages (present and future), medical bills (present and future), doctor appointment, transportation cost for receiving therapies, etc.

Non economic damages-Non economic damages fall under the category of general damages. Non economic damages are damages which affects the overall wellbeing of the individual, especially the mental health. You can receive compensation for such damage if there has been a permanent injury, loss of body functionality and Scarring.   

Income tax on car accident injuries- In case of settlement, both the parties have to include tax considerations. There are certain compensations on accidents which are taxable. However, if the victim has received certain amount for personal injury without taking any medical expenses for the damages, then the full amount is not subjected to nay taxation.

Compensation for bodily injuries is non taxable- In case of car accident settlements, the amount is non-taxable. For example, if there are instances of physical injuries in a car accident lawsuit, then the amount received for damages apart from physical injuries will be still considered as the payout given for physical injuries.

Compensations for emotional damages are taxable- The amount given as a compensation for emotional distress is subjected to taxation because this damage has not been a result of physical injury.

Punitive damages- In this, the compensation has to be the given to the victim by the party at fault. Though this type of damage is rarely awarded, but the jury can agree to provide these damages to punish the driver to prevent him from repeating the same mistake.

Car accidents are heart breaking and it can bring miseries to your life. There are professional lawyers to soothe your burdens and provide you some relief so that you can restore your form easily. Consider the help of a professional attorney to receive what you deserve!

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