Introduction
Crime victim compensation is a government program designed to reimburse victims of violent crime for their out-of-pocket expenses relating to the crime. Surviving or affected family members may also be eligible for limited compensation. Generally, victims apply to the state’s compensation program where they live or where the crime occurred. Compensation can be paid even when no one is arrested or convicted for the crime.
Eligibility
In order to be eligible, generally, the victim must have reported the crime during a specific period of time and cooperated in the prosecution of the case. They must also file an application for compensation within a specific period of time. Victims may be ineligible if their own misconduct contributed to their injuries—for example, if they were injured while they were committing a crime. Most compensation programs are open to the direct victims of violent crime or to their surviving family members. A few allow victims of serious financial crime to seek compensation for counseling expenses. Those who pay a victim’s medical or funeral expenses may be eligible for direct reimbursement from the compensation program.
Compensable Expenses
Each state determines which expenses it will cover. Most compensation programs will pay medical expenses, counseling expenses, lost wages, and funeral expenses. Many will pay for a sexual assault forensic exam, crime scene cleanup, family member counseling, or other related expenses. With very limited exceptions, they do not pay for property loss or pain and suffering. Compensation programs are “payers of last resort.” They will only pay for things not covered by insurance or other sources of assistance.
Each state has a cap on the total compensation it will pay in a case. The state may also limit various categories of expenses, such as no more than $5,000 for burial expenses or $350 for crime scene cleanup.
Procedural Issues
State law sets out the application and award procedures, payment procedures, appeal procedures, and confidentiality of information received. State law generally also provides that compensation awards are not considered in bankruptcy proceedings and may not be taxed.
State law also usually sets out the funding source for the compensation program—often a fine on criminal offenders. Some state compensation programs also administer a separate program to collect offender profits from crime, often called “notoriety-for-profit” programs.