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Simple English definitions for legal terms
pecuniary loss
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A quick definition of pecuniary loss:
Pecuniary loss is when you lose money or something valuable unexpectedly. For example, if you buy a toy for $10 and then sell it for $5, you have a pecuniary loss of $5. It can also refer to the amount of money an insurance company has to pay when something you have insured gets damaged or destroyed.
A more thorough explanation:
Definition: Pecuniary loss refers to an undesirable outcome of a risk that results in the disappearance or reduction of value, usually in an unexpected or unpredictable way. It can also refer to the financial detriment caused by an insured person's death or damage to insured property, for which the insurer becomes liable.
Examples:
- If you buy a stock for $100 and later sell it for $80, you have experienced a pecuniary loss of $20.
- If a person's car is damaged in an accident, the insurance company may be liable for the pecuniary loss incurred by the owner to repair the car.
The examples illustrate how pecuniary loss can occur due to a decrease in value or damage to property, resulting in financial detriment to the owner. In both cases, the loss is calculated by subtracting the original cost from the selling price or repair cost, respectively.