What type of damages compensates for loss of wages and medical expenses?

Prepare for the Iowa Property and Casualty Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Special damages are designed to compensate a victim for quantifiable losses resulting from an injury or accident. This includes specific economic hardships such as lost wages, medical expenses, and other measurable costs incurred due to the incident. These damages are distinct from general damages, which tend to cover more subjective non-economic losses such as pain and suffering or loss of enjoyment of life.

In contrast, punitive damages are intended to punish the wrongdoer and deter similar behavior in the future, rather than compensate the victim for their specific financial losses. Consequential damages refer to losses that are not directly caused by an incident but arise as a foreseeable consequence of that incident, which further differentiates them from the direct compensatory nature of special damages. Thus, special damages are the appropriate category for losses related to wages and medical expenses, as they focus on actual monetary out-of-pocket costs.

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