WHAT ARE DAMAGES AND COMPENSATION?
In Bolivia’s legal system, the concepts of “damages” and “compensation” are commonly used to request financial restitution—provided the harm can be properly proven.
To understand them in depth, it is essential to distinguish between the two.

TYPES OF DAMAGES AND COMPENSATION
Having noted that damages and compensation can involve both property and personal rights, we now illustrate the main categories with practical examples.
ACTUAL DAMAGE
Actual damage refers to direct and verifiable losses. The harm must be real, measurable, and demonstrable.
LOSS OF EARNINGS
Loss of earnings is the income or benefit that a person fails to obtain as a result of the suffered damage. This includes lost opportunities or the inability to perform certain actions due to the incident.
While actual damage involves an observable loss that occurred, loss of earnings is based on estimations or projections of what could have been earned.
PRACTICAL EXAMPLE
Consider a frequently used example: person A crashes into person B’s car. B is a taxi driver. – The actual damage includes the cost of repairing the vehicle—such as mechanic fees or replacement of damaged parts. – The loss of earnings would be the income the taxi driver misses out on while the vehicle is being repaired, as the car is his main work tool.
DAMAGE TO PERSONAL RIGHTS
There are also cases where damages affect an individual’s personal rights. These include physical or health-related harm that may or may not have economic implications, and harm to personal qualities like honor, dignity, or reputation.
For example, if person A spreads false information about person B intending to damage their reputation, and B suffers professional or personal consequences as a result, compensation may be due—even if the impact is not strictly financial.
DAMAGES AND COMPENSATION IN BOLIVIAN LAW
In our legal system, we can observe how these concepts are addressed in various regulatory texts.
In the case of the Political Constitution of the State, Article 113 states:
“Article 113. I. The violation of rights grants victims the right to indemnification, reparation, and compensation for damages in a timely manner. II. If the State is ordered to pay financial compensation for damages, it must file a recourse action against the authority or public official responsible for the action or omission that caused the damage.”
This article indicates that our legal framework guarantees protection in cases of rights violations that result in damages, by recognizing the right to indemnification, reparation, and compensation.
On the other hand, Article 87 of the Penal Code states:
“Article 87 – (Civil Liability). Any person who is criminally liable is also civilly liable and is obligated to repair the material and moral damages caused by the crime.”
This article helps us understand that the damage caused by a crime is not limited to criminal responsibility but also entails civil liability.
In this regard, we can refer to the Civil Code, specifically Articles 345 and 346:
“Article 345 – (Foreseeable Damage). Compensation only covers the damage that was foreseen or could have been foreseen, unless the breach or delay is due to the debtor’s willful misconduct.”
“Article 346 – (Immediate and Direct Damages). Even in cases of willful misconduct by the debtor, compensation should only include, in terms of the loss experienced by the creditor and the profit of which they were deprived, that which is the immediate and direct consequence of the non-performance.”
Thanks to the preceding articles, we can better understand the scope of compensation, considering the debtor’s intent. That is, they take into account whether the person who caused the damage knew and understood the consequences of their actions.
HOW TO CLAIM DAMAGES AND COMPENSATION IN BOLIVIA
Besides alternative dispute resolution methods such as agreement, conciliation, and mediation, civil proceedings are a primary legal avenue to seek compensation.
Under Article 215 of the Civil Procedure Code:
“If the ruling orders the payment of fruits, interest, or compensation for damages, it must specify a fixed amount and set a deadline for compliance or, exceptionally, establish the basis for its liquidation during enforcement of the judgment.”
Additionally, Article 323 of the same code provides:
“If a precautionary measure is lifted because the requesting party abused or exceeded their rights, the court may order compensation for damages upon request by the other party. The amount will be determined through incidental proceedings.”
In summary, damages and compensation in Bolivia may apply to property, assets, or personal rights. Both types of harm can give rise to civil liability. The legal framework offers mechanisms through which victims can seek restitution—most notably via civil litigation, where compensation may be awarded through a final ruling or in incidental proceedings.
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Frequently Asked Questions (FAQs)
What is the difference between actual damage and loss of earnings?
Actual damage involves a tangible and direct loss, such as broken property. Loss of earnings refers to income that could not be generated due to that damage.
Can moral damages be compensated in Bolivia?
Yes. Moral damages—such as harm to reputation or emotional distress—can be subject to compensation under Bolivian law.
Is it necessary to go to court to claim damages?
Not always. Compensation may be agreed upon through conciliation or mediation. However, civil court proceedings are often used when no agreement is reached.
Are damages limited to physical harm?
No. Damages may include harm to personal rights, reputation, emotional well-being, or economic loss.
Can the State be held liable for damages?
Yes. The Constitution allows victims to claim compensation from the State. The State, in turn, can seek reimbursement from the responsible public official.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.