PRINCIPLES OF COMPENSATION FOR DAMAGE

I. ACTUAL DAMAGE MUST BE COMPENSATED IN FULL AND PROMPTLY

Unless otherwise provided by law, parties may agree on the amount of compensation; on the form of compensation, which may be money, in kind or the performance of an act; lump sum payment or payment in instalments; and on the method of compensation.

  1. Upon settling disputes over compensation for extra-contractual damage, the principles for damage compensation provided for in the Civil Code should be strictly observed. The agreements reached between the parties on the compensation levels, forms and modes should be respected if such agreements do not run counter to law and social ethics.
  2. Damage must be fully compensated for, meaning that when there is a claim for compensation for damage caused by infringement upon property, health, life, honor, dignity and/or prestige, it should be based on the relevant provisions of the Civil Code in such specific cases that the damage covers which items and the levels of damage caused, the extent of fault of the parties in order to compel the damage causers to compensate for such corresponding damage amounts.
  3. In order to have damage compensated in time, the court shall quickly handle the claims for damage compensation within the time limit prescribed by law. In case of necessity, one or a number of provisional emergency measures can be applied under the provisions of the procedural law in order to settle urgent claims of the involved parties.

II. The compensation payable by a person having caused damage may be reduced if such damage was caused unintentionally and is very large in comparison to the financial positions of such person.

The damage causers can enjoy lower compensation levels only when they fully meet the two following conditions:

  1. The damage is caused due to their unintentional faults;
  2. The caused damage is too great for their immediate and long-term economic capabilities, which means the caused damage for which they have to compensate but cannot pay full or large compensation for such damage due to their immediate and long-term economic circumstances.

III. If the amount of compensation determined becomes unrealistic, the aggrieved person, or the person having caused damage, has the right to request a court or another competent authority to change the amount of compensation.

The compensation levels are no longer suitable to reality, which means that due to changes in the economic and social situation, price fluctuation, the current compensation levels are no longer suitable or due to changes in the casualty status and/or working capacity of the victims, the compensation levels are no longer suitable, or due to changes in the economic capabilities of the damage causers, etc

IV. If the aggrieved party is partly his/her fault for causing the damage, that part of damage shall not be compensated.

V. The party having rights and interests infringed shall not be compensated if such damage incurs due to his/her failure to adopt necessary measures to prevent the damage.