Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Special damages refer to which of the following?

1. Out-of-pocket items that do not need to be substantiated.

2. Claims for emotional distress.

3. Damages that have to be proven or substantiated.

4. Coverage for property loss only.

The correct answer is: Damages that have to be proven or substantiated.

Special damages are a specific category of damages that require clear evidence and substantiation. They include quantifiable monetary losses that an individual has incurred due to an incident, such as medical expenses, lost wages, and repair costs. The pivotal aspect of special damages is that they must be documented and proven with invoices, bills, and other forms of evidence to establish the actual financial losses sustained. This distinguishes them from general damages, which often relate to non-monetary losses, such as pain and suffering, and do not require concrete proof. The definition focuses on the necessity for verification and substantiation, ensuring that the claims made reflect the actual financial impact of the incident. This requirement for documentation aligns with the legal expectation that claimants must provide adequate proof of their losses to receive compensation. Therefore, the reference to damages needing to be proven or substantiated accurately characterizes what special damages encompass.