But the whole idea is fundamentally flawed and I'll give a real life example to prove my point.
My brother is a bit of a **** and quite frankly I am playing down just how much of a **** he is to keep this believable. He goes out, gets drunk gets into fights, I strongly suspect he's into street robbery people as he has a tendency to 'find' items of value just lying around the place. It is only a matter of time before he finds himself in the nick or in the ground. Personally I'd prefer the nick because I hate funerals and I think my family would force me to attend. I could quite easily imagine him getting into a fight one day and killing the other guy, whether it be by accident or not.
Now by your system, I, along with my parents and sisters would be force to pay compensation to the victims family even though all my family has ever done is try to straighten him out, at times to significant financial loss. He just cant be disciplined and he cant be controlled, its never worked on him, not even when he was a toddler, if you tell him to do something there is a good chance he will do the other out of spite. So how would your system help him?
Disclaimer the above statement may or may not be true, and as such is inadmissable as evidence should by brother actually kill someone in the future