The Collateral Source Rule
In personal injury cases, the Supreme Court of Virginia has barred defendants from seeking to limit damages because the plaintiff had insurance. This is known as the collateral source rule, a long-standing principle in Virginia tort law that has been applied in tort cases for more than 100 years.
Under the collateral source rule, compensation or indemnity benefits received by a personal injury victim from a source collateral to the defendant may not be applied as a credit against the damages owed by the defendant. A negligent party owes full compensation for the injury inflicted and payment from a collateral source does not relieve the wrongdoer of this obligation.
Evidence of insurance, medical payments, disability benefits, sick-leave payments, voluntary salary payments, and other types of payment are inadmissible to reduce the amount of damages awarded.
For more information about Virginia personal injury law, contact Richmond workers compensation attorney and disability lawyer Corey Pollard.