What is compensation?
In Polish case law and legislation, the concept of “compensation” is linked to the redress of non-pecuniary loss in the form of compensation for harm caused and the redress of pecuniary loss.
Table of contents:
What is damage?
When can we speak of liability for damages?
What does compensation involve?
What is damage?
Damage (the meaning in civil law) is damage to legally protected assets that was incurred against the will of the injured party. It may be:
pecuniary – when the injured party’s assets or interests are violated.
Examples of property damage include:
- the cost of replacing a damaged item,
- the cost of treatment, rehabilitation, and medication,
- the cost of renovating a flooded apartment,
- the cost of repairing a damaged car,
- etc.
non-property damage – when the injured party’s honor or health is damaged.
Examples of non-property damage include:
- mental suffering caused by the loss of a loved one,
- damage to one’s image,
- damage to goodwill or other personal rights,
- etc.
When can we speak of liability for damages?
Liability for damages can be considered when:
- damage occurs (intentional or unintentional),
- there must be a causal relationship between the event that caused the damage and the damage itself,
- legal provisions provide for the obligation to compensate the perpetrator for the damage.
What does compensation involve?
Compensation is when the injured party receives compensation in kind or (as is most common) a monetary payment corresponding to the value of the damage. Not only the perpetrator of the damage may be obligated to pay compensation. Entities obligated to pay compensation include insurers, who contractually assume liability for the actions of others. Another example is an employer, who is liable for the consequences of their employee’s actions arising during the performance of their duties.
Compensation takes the form of a benefit, consisting of reimbursement of costs (monetary compensation) or an action aimed at restoring the condition to the state prior to the damage. When the perpetrator is unable to repair the damage, they are obligated to pay compensation. An assessment of the damage is then necessary.
