In general how were insults / defamation addressed under Roman law?
I think I found it and it is indeed a quite interesting aspect:
http://spectacledavenger.blogspot.gr/2009/03/slap-in-face-to-corrective-justice_19.html
Lucius Veratius and Corrective Justice
The Roman antiquarian writer Aulus Gellius, in his Attic Nights (20.1.13), tells an amusing story about a wealthy citizen around the first century BC named Lucius Veratius, who had an interesting way of protesting the absurdity of the traditional fixed sum for wrongful injury. According to the story, Veratius would stroll through the Forum accompanied by one of his slaves, who carried a pouch of money. He would slap free citizens in the face (egregious iniuria by Roman legal standards) and then instruct his slave to dole out to them the appropriate number of coins. This strange form of protest did eventually lead to an overhaul of the private law with regards to iniuria.
If you have more information on this issues (or other similar situations throughout the history, where someone abused fixed / low compensation amounts), please share it, as it is quite interesting!