What is the term used for a formal award to provide a remedy for loss or injury?

The term for a formal award intended to provide a remedy for loss or injury is compensatory damages. This type of damages is designed to compensate the injured party for actual losses incurred, whether they are economic (such as medical expenses or lost wages) or non-economic (such as pain and suffering). The focus is on making the injured party whole again by covering both tangible expenses and intangible losses resulting from the injury.

Punitive damages are distinct as they are intended to punish the wrongdoer and deter future misconduct rather than directly compensating the victim for their loss. Restitution typically involves returning specific benefits or property to the injured party, rather than providing financial compensation for losses. Reimbursement refers to the act of repaying someone for incurred expenses but does not specifically address the broader scope of remedies for loss or injury that compensatory damages encompass. Thus, compensatory damages is the correct term that most accurately describes a formal financial award aimed at remedying a person's loss or injury.