The article deals with the economic analysis of compensation in civil law. The compensation is not only judicial remedy, but also it is the price of delict, which has to be estimated correctly to achieve the economic efficiency. The article is aimed at understanding of destination and functioning of compensation institution. The issues of compensation influence on a people behavior and effective stimulus creation to accept precautions are the ones of the highest priority. The author considers a broad scope of questions about functioning of compensation system. They are: the methods for estimating of a compensation size; the methods for deciding a conflict between efficiency and justice; the ways of deciding the compensation paradox; the methods of estimating an optimal level of precautions and an optimal level of confidence; problems of informing about delinquencies; problems of influence of insurance systems; problems of responsibility under administrative and criminal law.