What is considered non-economic loss?

Non-economic loss refers to the damages that are not quantifiable in monetary terms and typically encompass the intangible impacts of an injury. Psychological and emotional harm falls into this category as it involves suffering and distress that individuals experience as a result of an accident or injury, but it does not have a direct financial value attached to it. This type of loss acknowledges the pain, suffering, and loss of enjoyment of life that a person may endure, which cannot be precisely measured or compensated with a specific dollar amount.

On the other hand, loss of wages due to injury and repair costs after an accident represent tangible financial consequences of injuries or damages, making them economic losses. Damage to property is also a concrete, quantifiable loss, further distinguishing it from the more subjective nature of non-economic losses. Therefore, psychological and emotional harm is correctly identified as non-economic loss because it reflects the personal and subjective experiences that cannot be easily translated into monetary compensation.