Whiten v Pilot Insurance
In the "dimensions" part, there are this sentence "punitive award should not be seen by insurer as a license (no financial gain)" - Could someone share some thoughts on what does it mean? Thank you!
It looks like you're new here. If you want to get involved, click one of these buttons!
In the "dimensions" part, there are this sentence "punitive award should not be seen by insurer as a license (no financial gain)" - Could someone share some thoughts on what does it mean? Thank you!
Comments
It means punitive awards are meant to deter insurers from carrying out an abhorrent act, rather than just being seen as a "cost" of doing business. Giving an unrelated but simple example, if an insurer was involved in false advertising which brings an additional 5000 in income and is fined 1000 for doing so -> It's still seen as a net gain and they can just treat this 1000 as a cost of doing business. However, if the fine is 10000, then the punishment is way greater than the gain of 5000 and the insurer will be deterred as there is a financial loss in doing so
I am look at the BVH - DPL in the Land.CASE.
I thought D (Deterrence to insurer) is the deterrence?
Based on your explanation above both D and L seems to be deterrence?
So what is the difference between D (Deterrence to insurer) and L (punitive award should not been seen by the insurer as a "License" (no financial gain for insurer))
The deterrence for the insurer is the punitive award. Just saying deterrence doesn't answer what the deterrence is
I am still confused.
Could you provide an example for each one:
It's not one or the other in this case -> Deterrence means an act that will prevent occurrence of an event going forward. In this case, a punitive award is meant to prevent this from occurring again. The punitive award is the deterrence