Taxability of Insurance Claims and Lawsuits

If you receive money from a lawsuit or insurance claim, is it taxable?  It isn't if it is paid on account of physical injury or illness. Even if you receive damages for emotional distress relating to an injury it still isn't taxable. The following damages are taxable: punitive damages, interest on awards, discrimination, slander, defamation, libel, and harassment. Payment for property damages less than basis is also not taxable.