Written by: Vrege Kolokossian Damages are the compensation you can claim when someone else’s negligence has caused you harm. Whether your injury occurred in a motor vehicle accident, due to medical negligence, or in a public place, damages aim to help restore you—at least financially—to the position you would have been in if the incident hadn’t happened.
Damages can cover both obvious costs, like medical expenses or lost income, and less tangible impacts, such as ongoing pain, reduced quality of life, or the need for care and support. It’s important to recognise not just the physical effects of an injury, but also the emotional and financial toll it can take on your life.
What are damages in personal injury law?
Types of damages you can claim
- Special damages: Put most simply, these are any economic losses you may incur.
- General damages: These are the losses suffered in a non-economic sense.
Special damages (economic losses)
| Type of Special Damages | What It Covers | Examples |
|---|---|---|
| Medical expenses | The direct medical costs you’ve incurred because of your injury. |
|
| Loss of income / earning power | Money you’ve lost, or may lose, because your injury prevents you from working as you normally would. |
|
| Cost of rehabilitation | Expenses for therapy or other procedures needed to recover from your injury. |
|
| Travel expenses | Costs incurred while travelling to receive medical care or treatment. |
|
| Cost of home modification | Expenses for adapting your home to meet new mobility or accessibility needs caused by your injury. |
|
Keeping a record of every expense from the moment your injury occurred is important to help make sure your claim is as complete and legitimate as possible. This not only makes your claim stronger but also ensures you’re fully compensated for every expense spent.
General damages (non-economic losses)
General damages consider not just that your life has been affected, but how it has affected you personally, because no two people’s circumstances or experiences are the same. These are deeply personal consequences of an injury, and unlike medical bills or invoices, they can’t be shown with a simple receipt.
| Type of General Damages | What It Covers | Examples |
|---|---|---|
| Pain and suffering | Ongoing physical pain and emotional or psychological distress resulting from the injury. |
|
| Reduced or loss of life enjoyment | Inability to engage in activities or hobbies that previously contributed to quality of life. |
|
| Loss of functional capacity | Difficulty or inability to perform everyday tasks and maintain independence due to injury. |
|
| Psychological and emotional trauma | Ongoing mental health impacts directly caused by the accident or injury. |
|
Even when two people suffer the same physical injury, the impact on their lives—and therefore their general damages—can be very different. For example, if an accountant breaks their arm, their work and daily life may be only mildly disrupted. In contrast, if a professional pianist suffers the same injury, their inability to practise or perform could significantly affect their career, identity, and overall quality of life. This demonstrates why general damages are assessed based on the personal and unique impact of an injury, not just the injury itself.
Schedule of damages
General damages consider not just that your life has been affected, but how it has affected you personally, because no two people’s circumstances or experiences are the same. These are deeply personal consequences of an injury, and unlike medical bills or invoices, they can’t be shown with a simple receipt.
Your schedule of damages acts like an invoice to the at-fault party or their insurer, clearly showing what you’re asking for. This structure helps make negotiations smoother, more transparent, and more effective.
What it includes
| 1. Special damages | Covering all financial losses, including lost wages, medical expenses, and rehabilitation costs. Special damages are supported with evidence like receipts, invoices, payslips, and financial records. |
| 2. General damages | These cover the less tangible impacts of your injury, including pain and suffering and reduced quality of life. In NSW, there is a maximum amount you can claim for non-economic loss, which is $804,000 as of 1 October 2025. |
Learn more: Compensation for pain and suffering
Amending the schedule of damages
The schedule of damages is not fixed. As your claim progresses, your lawyer can add any new losses until the case is resolved, either through mediation or trial. It’s advised to speak with a lawyer as soon as possible to get the proper guidance in creating your claim.
Get a free claim check
Notice of claim for damages
A notice of claim for damages (or simply, notice of claim) is the first official step in your claim. It’s the formal document that begins your case. A notice of claim is sent to the defendant or their insurer and tells them you’re pursuing compensation after an injury.
It’s worth noting that:
- This is a required legal step in presenting a personal injury claim, and your case cannot proceed without it
- If you’ve decided to go ahead with your claim, your notice of claim is typically sent quite soon after an incident occurs
- There are strict time limits that vary depending on the state or territory, and these must be met for your claim to be considered
- The notice briefly outlines the at-fault party, a list of injuries, and that compensation is being sought.
The notice of claim gives the defendant or insurer time to do their own investigation and starts the procedural timeline for negotiations or litigation. Serving it is the formal beginning of the process.
Timelines for submitting a notice of claim
Motor vehicle accident timelines
The differences can be quite broad from state to state. Some examples are:
| State or Territory | Notice of Claim |
|---|---|
| New South Wales (NSW) | Must notify the insurer within 28 days of the accident. |
| Victoria (VIC) | Submit a claim to the TAC as soon as possible after the accident. |
| Queensland (QLD) | For insured vehicles, a claim should be lodged within nine months of the accident. |
When claiming damages for a motor vehicle accident, it’s important to remember that very strict time limits exist in some states to lodge your case. For example, in NSW, you must file your police report and insurance claim within 28 days of the accident occurring. If you fail to meet these set parameters, there is a high chance of your claim being barred from continuing, particularly if you fail to submit a substantial reason for the delay in your submission.
Other personal injury claims
For personal injury claims outside motor vehicle accidents—such as public liability, workplace injuries, or medical negligence—notice of claim should generally be provided as soon as possible. However, most states allow up to three years from the date of the incident or discovery of the injury.
In public liability claims, early notice helps preserve evidence and maintain witness accounts. For workplace accidents, notifying your employer or insurer promptly ensures access to medical care and compensation entitlements. In medical negligence cases, timely notice allows you to secure medical records and expert reports before evidence is lost.
Providing notice early strengthens your claim and protects your right to compensation, even when the formal time limit has not yet passed.
How are damages calculated in Australia?
Compensation for damages is calculated based on the type of losses you’ve suffered, how severe they are, and how much they have affected your overall life and wellbeing.
| Factor | How It Affects Compensation |
|---|---|
| Severity and permanence of injury |
|
| Your age |
|
| Your pre-injury income and capacity |
|
| Impact on your future earning capacity |
|
How damages differ in real cases
The examples below show how compensation outcomes vary depending on injury severity, age, and the impact on future earning capacity.
| Personal Injury Area | Severity of Injury | Age of the Client | Outcome |
|---|---|---|---|
| Motor vehicle accident | Catastrophic spinal and internal injuries after being rear-ended by a 10-tonne truck. The injuries were permanent and prevented a return to work, significantly impacting daily life and long-term earning capacity. | Middle-aged | $870,000, reflecting the severity and permanence of the injuries, along with substantial future economic loss. |
| Public liability claims | Serious spinal fractures and nerve damage, with aggravation of pre-existing conditions. While recovery was prolonged, the injuries were not entirely disabling long-term. | Senior | $242,500; a lower economic loss due to retirement age, but increased care and assistance needs were taken into account. |
| Workplace accident | Multiple leg injuries requiring surgery, complicated by deep vein thrombosis and pulmonary embolism. Ongoing disability meant long-term care was required from a spouse. | Middle-aged | $850,000; a higher award due to permanent impairment, future care costs, and reduced earning capacity. |
| Medical negligence | Catastrophic birth injury resulting in Quadriplegic Dystonic Cerebral Palsy. The injury caused lifelong disability, complete dependence on carers, and the need for ongoing medical treatment and assistive equipment. | Child | $9,000,000, reflecting the extreme severity, lifelong care needs, and total loss of future independence and earning capacity. |
| Total Permanent Disability | Significant shoulder injury to the dominant arm requiring multiple surgeries over several years. The injury resulted in lasting physical and psychological impairment and ultimately ended the client’s career as a senior software engineer. | Middle-aged | $500,000 TPD payout driven by permanent inability to return to high-level employment despite earlier attempts to resume work. |
