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The collateral source rule is a legal doctrine in tort law that prohibits the admission of evidence showing that the plaintiff or victim has received compensation from sources other than the damages sought against the defendant .
Under the collateral source rule, evidence of a plaintiffs alternative or additional sources of payment for expenses or losses for which the plaintiff seeks damages in a civil action, such as insurance coverage, generally is excluded as irrelevant.
Today, it continues to have a major impact on claims and compensation for damages in personal injury cases. In most cases, Illinois courts uphold the collateral source rule and do not reduce damages owed by the defendant to the plaintiff for injuries.
The Common Laws collateral source rule (CSR) holds that in order to be considered compensation for tortious harm, benefits received by the tort victim must be: 1) directly inspired by the tortious harm and; 2) bestowed by the tortfeasor or by someone acting on the tortfeasors behalf.
A violation of this Section is a Class 4 felony when the damage to property is $500 or less; a Class 3 felony when the damage to property exceeds $500 but does not exceed $10,000; a Class 2 felony when the damage to property exceeds $10,000 but does not exceed $100,000; and a Class 1 felony when the damage to property

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Subrogation underscores the principle that the collateral source rule is designed to make victims whole, not to provide them with a financial windfall beyond their actual losses. Even with subrogation, there are times when plaintiffs might still end up with more money than their injuries cost.
A rule of damages stating that benefits received by a plaintiff from a source wholly independent of and collateral to the wrongdoer do not diminish the damages the plaintiff can otherwise recover.

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