Collateral benefits and double recovery
Collateral benefits and double recovery

The following PI & Clinical Negligence guidance note provides comprehensive and up to date legal information covering:

  • Collateral benefits and double recovery
  • General principles
  • Insurance payments
  • Charitable payments
  • State pension
  • Pensions
  • Double recovery

General principles

As a general rule, a claimant must give credit for any financial gains they make that they have received as a result of their injuries.

A collateral benefit, however, is a financial gain that the claimant would not have received had they not been injured, and is ignored when assessing damages.

The main examples of collateral benefits where the claimant is not required to give credit are:

  1. payments made under an insurance policy

  2. charitable gifts of third parties

  3. state retirement pension

  4. other pensions (although note that ill health and retirement pensions paid prior to the claimant's retirement age are treated differently from those paid after the normal retirement age: see Practice