What is the definition of Collateral Source Rule?
Collateral Source Rule is a rule of evidence which prevents the plaintiff from using the claims paid by insurance companies as evidence that part of the victim’s damages has already been paid. For example, in a lawsuit on personal injury, the one being accused cannot show paid medical bills (that were paid by medical insurance) as proof that payment has been made for part of the damages being paid against him. When the court awards the complainant with a specified amount in damages (for issues such as accident, illness, injury and sickness), the plaintiff cannot use other financial sources such as Disability Income Insurance, Workers’ Compensation and Health Insurance.
