What Are Special Damages In Personal Injury Claims?

In a personal injury claim, the money you receive is called damages. This is typically split into two parts: general damages and special damages. While general damages focus on your physical and mental suffering, special damages deal with the tangible, financial impact of the accident. Understanding what special damages are can help to ensure that you’re not left out of pocket due to someone else's negligence.

What Are Special Damages In Personal Injury Claims?

Special damages are designed to compensate you for the specific financial losses you have incurred as a direct result of your injury. Unlike general damages, which are somewhat subjective and based on the severity of your pain, special damages are objective and quantifiable. They have a clear monetary value that can be calculated down to the penny.

The core principle behind special damages in personal injury claims is to restore you to the financial position you would have been in if the accident had never happened. Whether you’re dealing with a road traffic accident or a slip in a public place, these damages ensure that the costs of your recovery and the disruption to your income are covered by the responsible party’s insurance.

What Is Special Damages Personal Injury Compensation Designed To Cover?

The scope of special damages is quite broad, as it aims to cover every financial hit you take because of the incident. Common examples include:

1. Loss of earnings: If you’ve had to take time off work to recover, you can claim for the wages you’ve lost. This includes not just your basic salary, but also any missed bonuses, overtime, or even future promotions you might have forfeited.
   
   
2. Medical expenses: While the NHS provides excellent care, you may choose or require private treatment to speed up your recovery. Special damages cover the costs of physiotherapy, osteopathy, or private consultations, as well as the price of prescriptions and over-the-counter medications.
   
   
3. Travel costs: The cost of getting to and from medical appointments can add up. You can claim for fuel mileage, parking fees, or taxi and public transport fares that were necessary because of your injury.
   
   
4. Care and assistance: If your injury is severe enough that you need help with daily tasks like cleaning, cooking, or personal care, the cost of this help can be included. This applies even if a family member or friend provides the care for free.
   
   
5. Damaged property: If your clothing, phone, or vehicle was damaged in the accident, the cost of repair or replacement forms part of your special damages claim.

The Difference Between General And Special Damages

General damages are awarded for non-monetary losses. This includes your physical pain, any psychological trauma like PTSD and the loss of amenity—which is a legal term for being unable to enjoy your hobbies or daily life as you did before.

In contrast, special damages are designed to reimburse you for the actual cash you’ve lost or spent. While general damages are calculated using legal guidelines and medical reports, special damages are calculated by adding up your receipts and payslips. Both are necessary to ensure that your final settlement truly reflects the total impact the accident has had on your life.

What Evidence Is Needed To Prove Special Damages?

Because special damages are based on exact figures, the court and the insurance companies require strict proof. Without evidence, personal injury solicitors cannot successfully argue for these costs to be included in your settlement.

To support your claim, you should try to keep the following:

• Receipts and invoices: Every time you pay for a prescription, a taxi to the hospital, or anything else related to your accident, keep the receipt.
  
  
• Payslips: To prove loss of earnings, you’ll typically need to provide three to six months of payslips from before the accident to establish your average income.
  
  
• Bank statements: These can help verify out-of-pocket expenses if a physical receipt has been lost.
  
  
• A diary of care: If family members are helping you at home, keep a log of the dates, times and specific tasks they’ve performed.

When people ask what are special damages in personal injury, they often forget that future losses can also be included. If your injury means you can never return to your previous job, expert evidence from a forensic accountant or employment specialist might be needed to prove the long-term financial loss you will suffer over the rest of your career.

Are Damages For Personal Injury Taxable In The UK?

A common concern for many claimants is whether they will lose a portion of their settlement to the taxman. So, are damages for personal injury taxable?

In the UK, the general rule is that personal injury compensation is not subject to Income Tax or Capital Gains Tax. This applies to both the general damages for your pain and the special damages for your financial losses.

If you’d like professional advice about special damages or more information about personal injury claims, we’re here to help. Contact us today to speak with a professional advisor who can help you identify every loss you’re entitled to recover.

Image Source: Envato