Does injury compensation lead to worse health

Financial compensation for losses arising from a personal injury is intended to benefit injured people and 'right the wrong' that has been done to them. While one may expect compensation to leave injured parties better off than they would otherwise be, the prevailing attitude is nonetheless that compensation does more harm than good. This argument - that compensation per se or aspects of the compensation-seeking or granting processes are harmful to health - is labelled the 'compensation hypothesis'.