General Damages vs Special Damages: Understanding Compensation in Personal Injury Claims with a Worked Example

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When pursuing a personal injury claim, compensation is not awarded as a single, undifferentiated sum. Instead, damages are divided into two distinct legal categories: General Damages and Special Damages. Understanding the difference between the two is essential, as each serves a different purpose, is calculated differently and requires different types of evidence.

As solicitors specialising in personal injury claims here at Step Legal, we regularly advise clients who are surprised to learn that compensation is not limited to pain and suffering alone, nor is financial loss automatically assumed. This article explains the distinction, how each head of loss is assessed and why careful preparation is critical to maximising recovery.

What Are Damages in Personal Injury Law?

In personal injury claims, “damages” refer to financial compensation awarded to place the injured person, so far as money can, in the position they would have been in had the injury not occurred.

Damages are intended to be:

• Compensatory, not punitive;
• Proportionate to the injury and losses sustained;
• Supported by evidence.

They are divided into:

• General Damages – non-financial losses; and
• Special Damages – Financial Losses and Expenses.

General Damages: Compensation for Pain, Suffering and Loss of Amenity

What Are General Damages?

General damages compensate for the non-financial impact of an injury, including:

• Physical pain and suffering;
• Psychological injury;
• Loss of amenity (i.e. loss of enjoyment of life)
• Permanent disability or impairment
• Disfigurement or scarring.

They recognise the human impact of an injury, even where no direct financial loss has been suffered.

How Are General Damages Assessed?

General damages are assessed primarily by reference to:

• Medical evidence (expert reports);
• The severity and nature of the injury;
• Duration of symptoms and prognosis;
• Whether recovery is full or ongoing;
• Impact on daily activities, work, hobbies and relationships.

Courts and solicitors rely heavily on the Judicial College Guidelines (JCG), which provide guideline compensation brackets for different categories of injury. These are not fixed tariffs (except in limited RTA whiplash cases), but authoritative benchmarks.

Examples of General Damages (Indicative)

• Minor soft tissue injury (full recovery): lower brackets
• Moderate back injury with ongoing symptoms: mid-range brackets
• Severe orthopaedic injury or permanent disability: higher brackets
• Psychological injury (e.g. PTSD): assessed separately and may significantly increase value
• Facial scarring or dental injury: assessed by visibility, permanence and psychological impact

Importantly, general damages are awarded even if the claimant has no financial losses.

Whiplash Exception

In most post-31 May 2021 RTA cases, whiplash injuries are subject to a statutory tariff, limiting judicial discretion. However:

• Non-whiplash injuries can still attract traditional general damages;
• Psychological injuries or complications may justify higher awards;
• The distinction between tariff and non-tariff injuries is often contested.

Special Damages: Compensation for Financial Loss

What Are Special Damages?

Special damages compensate for actual financial losses and expenses incurred as a result of the injury. The guiding principle is reimbursement, not estimation.

They may cover:

• Past losses (already incurred); and
• Future losses (reasonably anticipated).

Unlike general damages, special damages must be specifically pleaded and strictly proven.

Common Heads of Special Damage

a) Loss of Earnings

• Past loss of earnings during absence from work
• Loss of bonuses, overtime or commission
• Future loss of earnings or loss of earning capacity in serious cases.

Evidence typically includes payslips, P60S, employment contracts and expert evidence in complex cases.

b) Medical and Treatment Costs

• Private medical treatment;
• Physiotherapy or rehabilitation;
• Dental treatment;
• Psychological therapy;
• Prescription costs.

Even where NHS treatment is available, private treatment may be recoverable if reasonable.

c) Care and Assistance

• Gratuitous care provided by family or friends;
• Professional care costs;
• Assistance with personal care, household tasks or childcare.

Courts recognise that unpaid care has a financial value and can be claimed.

d) Travel and Out-of-Pocket Expenses

• Mileage to medical appointments;
• Parking or public transport costs;
• Equipment or aids required due to injury.

These are often modest individually but can be significant cumulatively.

e) Future Losses

In more serious cases, special damages may include:

• Future medical treatment;
• Ongoing care needs;
• Adaptations to housing or vehicles;
• Long-term loss of earnings or pension loss.

These claims often require expert evidence from medical, occupational or forensic accounting specialists.

Pleading and Proving Special Damages

Schedules of Loss

Special damages are presented in a Schedule of Loss, which itemises each head of claim and the supporting evidence.

Key principles:

• Every item must be causally linked to the injury;
• Claims must be reasonable and proportionate;
• Speculative or unsupported losses will be rejected.

Defendants typically respond with a Counter-Schedule, disputing causation, quantum or necessity.

The Relationship Between General and Special Damages

While distinct, general and special damages are closely connected:

• The severity of injury (general damages) often drives the scale of financial loss (special damages);
• A modest injury may attract high special damages (e.g. loss of earnings);
• A severe injury may attract limited special damages if the claimant is retired or unemployed.

A well-prepared claim considers both heads together, rather than in isolation.

Interim Payments

In cases where liability is admitted, claimants may seek interim payments to cover:

• Loss of earnings;
• Treatment costs;
• Rehabilitation or care.

These are paid before final settlement and deducted from the final award.

Tax and Benefits Considerations

• Personal injury damages are generally tax-free.
• Certain benefits may be recoverable by the state under the Compensation Recovery Unit (CRU) scheme;
• Large awards may require financial planning or the use of personal injury trusts.

Why Specialist Legal Advice Matters

Underestimating either general or special damages can significantly undervalue a claim. Common pitfalls include:

• Settling before prognosis is clear;
• Failing to evidence financial losses;
• Overlooking future losses;
• Accepting insurer valuations based solely on injury type.

Specialist personal injury solicitors ensure:

• Proper medical evidence is obtained;
• All recoverable losses are identified;
• Claims are accurately valued and robustly negotiated.

Worked Example: How General and Special Damages Are Calculated in Practice

To illustrate how general damages and special damages work together in a real personal injury claim, we set out a simplified example based on cases we regularly handle at Step Legal

Scenario

Our client was involved in a road traffic accident caused by another driver’s negligence. Liability was admitted at an early stage.

As a result of the accident, the client sustained:

• A moderate soft tissue neck and shoulder injury;
• Ongoing symptoms for approximately 14 months;
• Time off work and the need for private physiotherapy.

General Damages (Pain, Suffering and Loss of Amenity)

Medical evidence confirmed:

• Initial severe pain and restriction of movement;
• Gradual improvement with treatment;
• Full recovery expected within 18 months.

Using the Judicial College Guidelines, this injury fell within the bracket for moderate neck injuries, taking into account duration, impact on daily life and recovery outlook.

General Damages Award:
£7,500

(This figure compensates solely for pain, suffering and loss of amenity.)

Special Damages (Financial Losses and Expenses)

In addition to the injury itself, the client suffered several financial losses, all of which were supported by documentary evidence.

Breakdown of Special Damages

Loss of Earnings

• 6 weeks off work
• Net weekly income: £600
  Total: £3,600

Medical and Rehabilitation Costs

• Private physiotherapy (10 sessions @ £75): £750

Travel Expenses

• Mileage to treatment and GP appointments: £120

Care and Assistance

• Help from family with household tasks (10 hours per week for 6 weeks, valued at £9.50 per hour):
  Total: £570

Total Special Damages

£5,040

Total Compensation Award

Why This Matters

This example demonstrates several important points:

• General damages alone do not tell the full story of a claim’s value.
• Financial losses can significantly increase overall compensation.
• Even relatively short periods off work or modest treatment costs can materially affect settlement value.
• Without proper legal advice, many claimants risk recovering only general damages or undervaluing special damages altogether.

At Step Legal, we take a holistic approach to valuation, ensuring that every recoverable loss is identified, evidenced and pursued.

Summary

General damages and special damages serve different but equally important roles in personal injury compensation. One recognises the human cost of injury; the other ensures financial losses are properly reimbursed.

A successful personal injury claim requires careful assessment of both supported by evidence, expert input and strategic judgment. Early legal advice can make a decisive difference to the outcome, ensuring that compensation reflects not only the injury suffered, but its full impact on a claimant’s life.

How Step Legal Can Help

Every personal injury claim is different. The value of damages depends not only on the injury sustained, but on how it affects your work, finances, family life and future.

Our specialist personal injury solicitors:

• Obtain robust medical evidence;
• Prepare detailed Schedules of Loss;
• Advise on interim payments;
• Negotiate firmly with insurers;
• Ensure claims are not settled prematurely or undervalued.

To speak to a solicitor about your claim, visit our websiteand make an enquiry, email us at via enquiries@steplegal.co.uk or call us on 01270254064 today for a free initial consultation.