Motorcycle Insurance Glossary - damages
The sum of money awarded to the injured party in an insurance claim in compensation for loss, harm or injury.
Damages are generally awarded to place the claimant in the position he/she would have been had the accident not taken place.
Direct losses and consequential losses
Special damages are sometimes divided into direct losses, and consequential or economic losses.
Direct losses include the costs needed to remedy problems and put things right. The largest element is likely to be the replacement of the motorbike that has been damaged.
The claimant may also be entitled to any consequential losses. These are the lost profits that the claimant could have been expected to make in the period whilst the bike was being replaced if the motorbike was used directly in conection with his/her work.
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