Which type of damages does a court award to punish a wrongdoer and encourage them to not participate in wrong doing again?

A court awards punitive damages to punish a wrongdoer and deter them from engaging in similar misconduct in the future. Unlike compensatory damages, which are intended to reimburse the victim for losses, punitive damages are meant to serve as a form of punishment and a warning to others. These damages are typically awarded in cases involving egregious behavior, such as fraud or malicious intent.