Compensation is defined as payment by the State to the victim of a crime or to his dependents to make up for the loss incurred. The British Home Office Working Party emphasizes compensation for the victims of crimes of violence only, whereas the Canadian Correctinal Association refers to compensation to victims of crimes of all kinds. A brief review of the history of compensation traces the idea of compensation back to ancient codes including the Code of Hammurabi, the Mosaic Law, the Penal Code of Solon, and Roman Law. Schafer's 1960 survey of 29 countries classifies current practices of compensation into three categories. Compensation based on damage is civil in character and is awarded in civil proceedings. Restitution is either civil in character but awarded in criminal proceedings or interwoven with penal law and awarded in criminal proceedings. Compensation is either civil in character and awarded in criminal proceedings or neutral in character and awarded through a special procedure. Schafer points out that the principle of compensation for victims is not widespread, and the demand for improvement of the victim's position is neither insistent nor significant in any country. The absence of victim compensation in India's criminal law is emphasized. Payment of compensation to victims of crime is viewed as a social liability, and legislation providing for compensation is advocated. Eighteen references are provided.