When someone is injured due to another party’s negligence, compensation is meant to address both financial losses and human suffering. In Alberta personal injury law, this compensation is typically divided into economic losses (also called pecuniary damages) and pain and suffering (non-pecuniary damages). Understanding the difference is essential to setting realistic expectations and protecting your legal rights.
Understanding Economic Loss (Pecuniary Damages)
Economic losses are tangible, measurable financial impacts caused by an injury. These losses are usually documented with receipts, records, or expert reports.
Common examples include:
- Medical expenses and hospital bills
- Ongoing treatment and rehabilitation costs
- Lost wages and lost income
- Reduced future earning capacity
- Out-of-pocket expenses related to care or recovery
Because these damages are tied to financial records, they are often easier to calculate but can still be disputed by insurance companies.
What Pain and Suffering Compensation Covers
Pain and suffering compensation addresses the non-financial consequences of an injury. These damages recognize that injuries affect far more than bank accounts.
Pain and suffering may include:
- Physical pain and discomfort
- Emotional distress and mental anguish
- Psychological trauma, including post-traumatic stress disorder
- Loss of enjoyment of life
- Diminished quality of life
- Permanent impairment or serious impairment
These are often referred to as general damages or non-economic damages.
Key Differences Between Economic Loss and Pain and Suffering
| Economic Loss | Pain and Suffering |
| Financial and measurable | Intangible and personal |
| Proven with bills and records | Proven through medical evidence and testimony |
| Covers costs already paid or expected | Covers the human impact of injury |
| No statutory cap | Subject to legal limits in Alberta |
Both categories are essential to a complete personal injury claim.
How Pain and Suffering Is Calculated in Alberta
Unlike medical bills, pain and suffering is not calculated with a simple formula. Courts consider several key factors, including:
- Injury severity
- Duration of recovery
- Long-term or permanent effects
- Impact on daily life and relationships
- Psychological and emotional suffering
Alberta also applies a minor injury cap, which limits pain and suffering compensation for injuries classified as minor. More serious or catastrophic injuries fall outside this cap.
The Role of Medical Evidence
Strong medical evidence is critical for both types of compensation. This may include:
- Medical records and reports
- Expert opinions from medical professionals
- Documentation of ongoing symptoms
- Personal testimony describing daily limitations
Medical documentation helps link the injuries to the accident and demonstrates how the injuries affect physical and emotional well-being.
Catastrophic Injuries and Compensation
In cases involving catastrophic injuries, compensation often reflects:
- Severe physical injuries
- Permanent disability
- Long-term psychological trauma
- Lifelong care needs
These claims typically involve higher pain and suffering awards and significant economic losses related to future care and earning capacity.
Why Insurance Companies Dispute Pain and Suffering
Insurance companies frequently challenge pain and suffering claims because:
- They are subjective
- They are harder to quantify
- Higher awards increase settlement value
This is why detailed documentation, expert support, and legal representation are essential.
Why Legal Guidance Matters
An experienced personal injury lawyer helps ensure:
- Economic losses are fully documented
- Pain and suffering damages are properly supported
- Compensation reflects both present and future impacts
Without legal guidance, injured people may undervalue their claims or accept settlements that fail to account for long-term consequences.
Final Thoughts on Fair Compensation
Both economic losses and pain and suffering are essential components of fair compensation. One addresses financial survival; the other recognizes the lasting human cost of injury. A well-prepared claim considers both—based on evidence, legal principles, and individual circumstances.
Speak With Grover Law Firm About Your Options
If you’ve been injured and are unsure what compensation may apply to your situation, Grover Law Firm can help you understand the difference between pain and suffering and economic loss, and how Alberta law applies to your claim.
Contact Grover Law Firm at (403) 253-1029 to discuss your situation and learn what compensation may be available to you.