Final answer:
The principle where a responsible party compensates individuals for their injuries is known as compensatory justice, which falls under the broader framework of distributive justice.
Step-by-step explanation:
The concept that the party responsible should compensate individuals for the cost of their injuries is referred to as compensatory justice.
This principle is one of the various approaches within the framework of distributive justice, but specifically focuses on restitution and fair compensation for losses or damages incurred.
Distributive justice itself is concerned with the just allocation of goods and services in a society and can include various ideologies and principles, such as those proposed by John Rawls and Robert Nozick, around how resources and burdens should be fairly shared among a population.
While policies based on distributive justice may address broader societal allocations, compensatory justice particularly calls for rectifying injustices that have caused harm to individuals by ensuring they receive adequate restitution.