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Wednesday, January 4, 2017

Explanation of Damage Cap

medical malpractice cases, medical malpractice caps, compensatory damages, cap meaning, malpractice insurance.


Regarding personal injury cases, when you file a claim against one person or organization, you usually think that you will be offered some money to compensate your injury. There are mainly two type of damages for which people get compensation. One is economic damage that is specific costs that you spent for your medical bills or the money to fix your damaged property. 


The other type of damage is called non economic damage. In non economic damage it includes all other damages that you faced like emotional distress or social problems that you and your family faced.

Law makers put a limit on this type of non economic damage. Because you cannot measure this damage with money, so damage cap is used to put a limit. Until now, each state put its own damage caps. The federal government has a $250,000 cap on non economic damages for medical malpractice claims.

Why Damage Cap is implemented?


Sometimes, it may seem to you that damage caps are not fair to the person who file a claim or the plaintiffs. So, after the juries make a decision about the money why the amount of money is changed later according to damage cap? Because there is a relationship between high amount of fine and the cost to run the business.

Let me give an example. Think about the cases of medical malpractice. There is devastating, sometimes horrifying consequences occur in the life of a patient if there is any negligence of doctor present. For this kind of cases, juries may give a large amount of compensation for the non economic damages. So the doctor or the medical malpractise insurance company have to pay this amount of money. So the cost of medical insurance will go up as well as the cost of treatment. This will affect the overall population. Everybody have to pay more for their medical procedures. So to prevent this high cost of business the damage cap is applied. Damage cap reduce the liability of the doctors as well as of other professions thus maintain reasonable running cost for the business.

Damage cap also limits the use of law to bring false claim against the professionals or organization. Some people simply use it to earn a lot of money by false lawsuit. This damage cap prevents this.


To learn more about damage cap please visit a personal injury lawyer.

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