What type of damages compensate for mental and physical distress?

Prepare for the Property and Casualty Insurance Exam. Study with flashcards, multiple choice questions, hints, and explanations. Gain confidence for your test!

General damages are specifically designed to compensate individuals for non-economic losses, which include mental and physical distress, pain and suffering, and emotional anguish. Unlike special damages, which provide compensation for quantifiable financial losses such as medical bills or lost wages, general damages address the more subjective aspects of a person’s suffering that cannot be easily measured in monetary terms. This makes general damages crucial in cases where emotional impact and quality of life are significantly affected due to an injury or wrongful act. Therefore, individuals who experience distress as a result of their circumstances are appropriately compensated through general damages.

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