Page 100 - Liability Insurance IC74

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Ans: (a) Punitive damages - Repeat of Q8(b) of Nov 2008

Special and general damages are known as
'compensatory' damages. Some states in the U.S also
award punitive damages as an additional amount, by
way of punishment and warning to others, where the
conduct has shown willful or wanton disregard of safety
considerations. These are also called exemplary
damages. The juries in these states may multiply the
basic amount of general damages by 5, 10 or even 20.
Hence, these damages are also known as multiplicatory
damages.

(b) Structured settlement - Ref of Q2 of Nov 2007
Structured settlement, which is payment of general
damages in installments rather than compensation as a
lump sum is now a common feature of liability claims in
the US and UK. A structured settlement is a process by
which a defendant or his insurance pay damages over a
period of time, usually through arrangement of annuity
schemes.

(c) Onus of proof - Repeat of Q8(a) of May 2008
Under the common law, the burden of proving negligence
rests with the person who has suffered the injury or
damage. In other words, he has to establish that the
defendant owed him a duty of care, and that this duty
was breached and the breach was the proximate cause

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