collateral source rule

Definition of "collateral source rule"
  1. A principle in tort law that states that any financial assistance or benefits the injured party receives from sources other than the wrongdoer will not decrease the compensation amount the wrongdoer owes to the victim
How to use "collateral source rule" in a sentence
  1. The collateral source rule implies that the award given to the injured party won't be lessened even if they received health insurance benefits.
  2. In a personal injury case, the collateral source rule could prevent a damages award from getting reduced because of the accident victim's own insurance coverage.
  3. Even though the injured person's medical bills were covered by an insurance company, due to the collateral source rule, the at-fault party is still responsible for those costs.

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