Compensation is a concept we encounter in many situations in life – from road accidents to work injuries to interference with personal rights. In simple terms, it is compensation for harm suffered as a result of an event for which another person or public authority is legally responsible (e.g. an unlawful act, traffic, decision or maladministration). What types of compensation are known, how do we apply for it and when does it make sense to contact a lawyer?
Compensation is a legal instrument designed to make good the harm suffered, whether pecuniary (damage) or non-pecuniary (e.g. interference with health or dignity).The aim is to restore the situation that would have existed if the harm had not occurred.
The legal regulation of compensation can be found mainly in the Civil Code or in other legislation such as the Law on State Liability for Damages or the Labour Code.
There are two basic principles of compensation. The first is the principle of restitution or restoration to the original state. This principle expresses the basic idea of compensation: to restore the original state as if the damage had never occurred. In practice, this means that the wrongdoer has a duty to restore things to the state they were in before the injury occurred. This could be, for example, repairing a damaged item (such as a broken car or a damaged fence) or restoring the function of a piece of equipment. Restitution is the most natural form of compensation because it remedies specific consequences and does not just address them financially. In many cases, however, it is virtually impossible to achieve full restitution – for example, in the case of serious personal injuries or destroyed items of irreplaceable value.
The second type is the principle of reparation, or financial compensation. If it is not possible to actually ‘undo’ the damage, the reparation principle, i.e. monetary compensation, comes into play. This type of compensation is most often used because it allows the victim to obtain some form of satisfaction even if the original state of affairs cannot be restored. Reparation compensation includes, for example, compensation for damage to property (e.g. the amount of money paid for destroyed goods or lost profits), compensation for non-pecuniary damage (e.g. pain, suffering, interference with dignity) or the costs of repairing the damage (e.g. legal costs, expert opinions).
The amount of financial compensation is determined on an individual basis, taking into account the extent of the damage, its permanence, the impact on the victim’s life and the circumstances of the case. In some areas (e.g. pain compensation) there are also methodologies or tables to help determine a fair amount.
Don’t let the insurance company or the at-fault party talk you out of it. Our lawyers will help you get fair compensation quickly and efficiently – clearly and without unnecessary delays
Compensation can cover a variety of situations. Below you will find an overview of the most common types we encounter in legal practice.
This is the most common form of compensation that relates to the physical or psychological consequences of an injury.
This includes, for example, pain and suffering, compensation for loss of amenity, compensation for medical expenses or compensation for loss of earnings.
In practice, the amount of compensation is usually determined today by the Methodology of the Supreme Court of the Czech Republic, which serves as a recommended framework for determining fair monetary compensation. The Methodology does not work with a fixed score, but provides guidance for the individual assessment of each case. Thus, the court or insurer takes into account the nature and severity of the injury, the length and difficulty of the treatment, the lasting consequences affecting the victim’s normal life and the psychological effects, such as limitations on life satisfaction or employment.
Practical example: The victim suffered a fractured leg in a car accident. In addition to compensation for the costs of treatment, he is entitled to pain and suffering and compensation for the mobility restrictions that affect his daily life.
If an item is destroyed, damaged or lost, it is property damage. Typical examples are a damaged car in a car accident, a flooded apartment, destroyed electronics, or lost profits due to a business interruption.
The injured party has the right to claim for actual damages and lost profits. It is important to prove the damage – for example with invoices, expert reports or photographs.
Non-pecuniary damage refers to interference with personal rights – for example, to honour, dignity, privacy or reputation. Unlike pecuniary damage, it cannot be quantified precisely, so the court has a fair discretion to determine its amount.
Examples of non-pecuniary damage are unauthorised publication of photographs, defamation in the media, unjustified criminal prosecution or interference with family life.
Employees have the right to compensation in the event of an occupational accident or illness.
The employer must pay compensation for loss of earnings, pain and suffering and social inconvenience, medical expenses and, in the event of death, compensation for survivors. Compensation is covered by the employer’s compulsory insurance, which covers these situations.
Claims against the State or local authorities in the event of an unlawful decision by a court or authority or an incorrect official procedure (e.g. delays in proceedings, unlawful prosecution) are a special type of compensation.
These cases are regulated by the Law on State Liability. The claim must first be filed with the competent ministry (e.g. the Ministry of Justice) and if it is not satisfied, it can be brought before the courts.
Hint: Personal injury can happen unexpectedly – in a car accident, a work accident or as a result of someone else’s negligence. Find out how to deal with such cases to get fair compensation.
The path to compensation can be complicated depending on the type of damage, who caused it and how well you can prove all the circumstances. However, in principle, there are a few steps that the victim should always follow to have a chance of fair compensation.
The first and absolutely essential step is to find out who is responsible for the damage. In legal terminology, this is known as identifying the plaintiff or the responsible party. In some cases, this is obvious – for example, the driver who caused the accident. Other times, the situation is more complicated; the employer, the insurance company, or even the state may be liable if the damage was caused by an incorrect decision by the authorities. It is not uncommon for there to be more than one responsible party, so it is advisable to consult a specialist at the outset to determine against whom a claim should be made.
The next necessary step is to gather evidence. It is the victim who has the burden of proof – he or she must prove not only that the damage has actually occurred, but also who caused it and that there is a causal link between the damage and the actions of the victim. Evidence can vary depending on the type of injury, but usually includes medical reports, receipts, photographs of damaged items, witness statements or a police report. The more thorough the documentation the victim prepares, the easier it is for them to pursue their claim and often avoid a lengthy court case.
Once the evidence is together, the amount of damages needs to be quantified. For property damage, this is usually relatively straightforward – it is based on actual costs, expert reports or prices that were customary at the time of the damage. In the case of personal injury or interference with personality rights, the procedure is individual, often taking into account the Methodology of the Supreme Court of the Czech Republic. The extent of the injury, the length of treatment, the permanent consequences and the impact on everyday life are taken into account. A well-written summary of the damages with all costs documented is convincing and greatly facilitates negotiations with the insurance company or the opposing party.
The claim for compensation must be made in writing. Usually the claim is sent to the person who caused the damage or to their insurer if they have liability insurance (for example, in the case of road traffic accidents). The claim should describe when and how the damage occurred, who caused it and how much compensation the victim is claiming. It should also include any evidence and supporting documents that support the claim. If the responsible person or the insurance company does not accept the claim, it is possible to take legal action. At such times, the presence of a lawyer is crucial – not only for the drafting of the claim, but also for the correct quantification of damages and procedural tactics.
It is very important to comply with the statute of limitations. In most cases, it is three years from the time the victim became aware of the damage and who was responsible. In addition, there is also an objective limitation period: generally 10 years from the date of the damage or 15 years if the damage was caused intentionally. However, different time limits may apply for certain specific claims (e.g. damage caused by the State). If the injured party misses this period, his claim may be legally justified, but the court will no longer recognise it. In this case, it is also worth having a lawyer on hand to look after everything for you.
In the end, the earlier you take action, the more likely you are to get full compensation. If the other party refuses to perform, offers an unreasonably low amount, or the situation gets complicated, it’s wise to contact an attorney. An experienced attorney can help you file a claim correctly, in a timely manner, and with attention to all the legal options the law provides.
Tip: Any driver can encounter a collision with wildlife, even if they follow all the rules of the road. An animal runs into the road unexpectedly and can cause tens of thousands of crowns worth of damage in a second. But who is responsible in such a situation?
Compensation is a legal remedy to make good an injury caused by the wrongful act (or other act for which a person, company or state is legally responsible) of another person, company or state – whether it is damage to property, personal injury or interference with personal rights. The Czech legal system distinguishes several types of compensation, ranging from compensation for pain and suffering, to property damage, to compensation for unlawful actions by the authorities. The basis is always either restitution, i.e. restoration to the original state, or reparation – monetary compensation if redress in kind is not possible. In order to successfully claim compensation, the victim must prove the damage, identify the person responsible, provide evidence, and submit the claim in writing, usually to the insurance company or directly to the victim. Knowledge of the statute of limitations, which is usually three years, is also key. In practice, the path to compensation is often complicated – claims are often cut short or denied by insurers or the responsible party – so it is worth consulting a solicitor.
It depends on the complexity of the case. Simpler claims can be resolved in a matter of weeks, court proceedings can take several months.
With an Affordable Lawyer, you know the price up front and can often negotiate a flat-rate legal service without an hourly rate.
Let the lawyer assess the reasons for the refusal. Many insurers only pay compensation after a legal notice or lawsuit.
Yes, non-pecuniary compensation can be claimed for proven psychological harm (e.g. after a car accident, bullying, wrongful prosecution).
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Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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