Definition - What does Compensation mean?
Compensation is a monetary remedy that is granted to a person who has suffered an injury, as defined by law, for the purpose of replacing the loss that was caused by the injury.
Depending on the case, there are different ways in which a person can receive compensation.
Compensation is provided for in civil cases. Legal compensation is more generally known as "damages" in the legal profession.
Justipedia explains Compensation
Legal compensation, or damages, is categorized into two broad categories: compensatory damages and punitive damages.
Compensatory damages are awarded to compensate someone for the costs associated with the injury. These damages are broken into different sub-categories.
Punitive damages are awarded specifically to punish the person who injured the plaintiff and to send a message to society that certain behavior will not be tolerated.