Pharmaceutical injuries insurance pays out compensation for any necessary additional expenses and losses arising from a pharmaceutical injury. By contrast, no expenses or losses that would have been incurred even without the injury are compensable. Consequently, no compensation is paid for the cost of treatment of the disease or injury that was originally being examined or treated, or for the cost of the pharmaceutical that caused the injury.
The amount of compensation paid under pharmaceutical injuries insurance is determined according to the provisions of the Damages Act and, where applicable, according to standards and guidance issued by the Traffic Accident Board. All expenses and losses relating to the injury are primarily covered in full. The injured, in turn, is expected to do whatever is possible to prevent further injuries and losses.
Secondary compensation scheme
Pharmaceutical injuries insurance is a secondary compensation scheme. When the amount of compensation is calculated, deductions are made for any benefits likely to be due to the injured out of public funds or under statutory insurance schemes. As a result, pharmaceutical injuries insurance pays the injured what remains of the expenses and losses arising from the injury after deduction of items covered by other statutory benefits and insurance schemes.