Getting compensation payments upfront before a claim is settled

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The regulated personal injury compensation claims sector has literally thousands of companies offering their services.  With this in mind, the consumer should be aware that not all companies are worthy and that not every piece of advertising you see can be counted on as being the level of service that you will receive. Be wary of any claims company or solicitor that offers upfront payments to induce you to place your claim for compensation with them.  Such activities are certainly not allowed within the framework of the current regulations. As we’ve said many times, it’s really important to make sure your claim is placed securely and with a regulated firm such as Direct2Compensation that you know that you can trust.

Interim payments

One question that comes up from time-to-time from claimants (and it’s usually those that are facing pretty serious injuries and lengthy periods of absence from work and lost income that ask this) is about the possibility of getting upfront payments in respect of their claim for personal injury compensation.  Looking at it from that perspective, if you are used to earning a couple of thousand pounds each month and then you earn nothing whilst you are injured, your main concern will be how to pay the bills.

However, unless there is a very serious injury that will require multiple surgeries and therefore making the length of time for that claim to be pursued unusually long, it is very difficult to get any interim payments of compensation.  Interim payments are made by a 3rd party that has already admitted liability.  Therefore they agree that they will be liable to compensate a claimant but are making an interim payment to cover a possible loss of income or for necessary expenses incurred as a result of the injuries and effect that they are having on a claimants day-to-day life.  It is fair to say that if you are making a claim for a relatively minor injury, such as a broken ankle, an interim payment is very unlikely.  It should be remembered of course, that any interim payment made will be a part of the total value of any settlement and will be deducted from any final settlement that is agreed between yourself, your solicitor and the 3rd party.

Beware of inducements

Claims management companies are subject to legal operating restrictions and regulated by Financial Conduct Authority.  We have heard examples of clients that have been charged interest on any ‘upfront’ settlement payments made to them, which when deducted from their final settlement has left them virtually nothing and from other clients that have never gone on to receive their final settlement.

Direct2Compensation never have and never will make a payment to any person in order to secure their claim. If your injuries and losses are such that you warrant an interim payment, we’ll do all that we can to get our solicitors to get the 3rd party to agree to one for you.  However, the key is getting an admission of liability and this can sometimes take time.

140 questions have been answered below, why not ask your own?

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Questions & Answers

  • Ian

    Why are loss of earnings not paid on a monthly basis once admission of liability has been admitted by the 3rd party?
    I had a car crash back in February and haven’t been able to work since due to my injury. I am now in a position where my SAP has come to an end and I am having to apply for benefits. My financial situation is that I am now facing voluntary bankruptcy because I am unable to cover my mortgage, loans, credit card etc. and my credit rating has been severely affected due to credit agreements, late and missed payments.
    I am suffering additional mental health issues because of the stress my financial situation is causing me but despite my best efforts my solicitor has only been able to secure a £1,000 interim payment.
    An accident that wasn’t my fault could essentially leave me destitute and homeless. How is this fair?

    Reply
    • Ian Morris

      The situation in which you find yourself is anything but fair and as you rightly say, your predicament is no fault of yours.

      Sadly, the framework within which personal injury defendants operate does not compel defendants to immediately cover loss of income once an admission of liability is obtained. Have you discussed your situation with your Solicitor?

      It would be prudent to do all you can to avoid bankruptcy as it is likely that you will receive a sizeable settlement in due course and if you can liaise with your creditors and provide evidence that your claim has liability accepted, they may be willing to place a freeze on any repayment requirements.

      Reply
  • Clare Birch

    I was offered an interim payment in May, yesterday I discover this is conditional on the defendant seeing the 2 expert’s reports. For seven months I have requested a second opinion from another psychologist, even if I fund this, but my solicitor was not forthcoming. I can barely read the report without having my “trauma” triggered & I know this report will damage my case. Yesterday my solicitor writes giving me the info required to seek a second opinion BUT she also said we would need to request an extension of time from the defendant, hence alerting them that there is an issue. I feel backed into a corner and believe my solicitor should have offered me this seven months ago, when I asked & asked. Had I received another opinion at that time this would not have impacted on my claim other than the information held within. I need advice as to how I can move forward without damaging my claim. Thank you

    Reply
    • Ian Morris

      Without knowing the ins and outs of your claim the contents of both reports and the reasons given by the defendant re their request to see both reports, it is impossible to advise you and we would suggest that your Solicitor (who must act in your best interests) should be entrusted to ensure the best outcome for you.

      Clearly, there are some discrepancies in some way between the two reports and this is likely to impact claim valuation and it is probably for that reason that the insurers wish to view them.

      If you are not happy with your Solicitors conduct, you should initially formally complain to them. This will see a senior partner within the firm – who has not had any conduct within your claim – review the work undertaken. If they uphold your complaint, they will have to resolve the situation and put any wrongs right. If they do not uphold the complaint, if you are unhappy with their response, you can escalate a complaint to the regulatory authorities and the ombudsman.

      Reply
  • Clare Birch

    Started my medical neg claim in 2015. Hospital accepted liability Nov. 2020.
    I was told I could have an interim payment but then I was told it was conditional and I have still not received any thing.
    I am far from happy about the way I am being treated or should I say mistreated again.

    Please can you advise me what is an average time to wait for an interim payment after acceptance of liability.

    Thank you

    Reply
    • Ian Morris

      There is no obligation for a defendant to make an interim award when dealing with a claim for compensation. However, when liability is admitted, it is more likely that an interim award can be obtained. In your case, if the defendant has accepted paying an interim amount and the amount has been agreed, it should be with you fairly quickly thereafter.

      Reply
  • Robert

    My solicitor have requested an interim payment and the request has been accepted,I had to tell them how much I wanted, how long will it be before I receive the interim payment? also is it paid by cheque? and is it paid direct to me or via my solicitor? thank you

    Reply
    • Ian Morris

      The interim amount should be paid to your Solicitor who will then in turn, forward settlement to you. This is likely to be paid to you via bank transfer.

      Reply
      • Jessica

        The insurers have sent an interim payment to my solicitors and the solicitors are processing the payment tomorrow, will this be an instant payment into my bank or will it take a few days ?

        Reply
        • Ian Morris

          Whilst it may take a few days to be processed, it shouldn’t take more than that.

          Reply
  • Keith

    I was knocked down by a car in reverse and I didn’t break any bones but lost 2 front teeth and I’m starting to get left leg and lower back pains it happened on 5.6.2021 I’ve not been to hospital since or doctor because I suffer mental illness and anxiety disorder and panic

    Reply
    • Ian Morris

      We feel that you have a valid claim and that this matter exceeds the new minimum value threshold for victims of non-fault car accidents wishing to pursue a claim for compensation after the 1st June 2021.

      Of course, we need to speak with you to obtain some further information and we’ll endeavour to make contact with you regarding this. Your reasons for not having attended your GP or Hospital are completely understandable. However, we would recommend that you do speak with your GP – perhaps over the telephone – to ensure that your injuries are recorded and this would help us in pursuit of appropriate compensation for you.

      You can call us on 01225430285 or email us at justice@direct2compensation.co.uk for further help.

      Reply
  • Lewis

    Good Morning,

    I was involved in a car accident 2 years ago. I have been through lost of treatment for my back and also physiological treatment.

    I have nerve damage in my back, I had some tests done on my back at a private hospital and the results was quite encouraging. Moving forward the Dr suggested I should have the treatment done at cost of £5800. The insurance company offered me an early settlement offer of £15000, I politely declined the offer as I haven’t had the final treatment. Recently the insurance company have decided not to pay for the treatment but offered me an interim payment of £6500. To be taken off my final settlement figures. My worry is if the treatment doesn’t work would the insurance company offer another payment for further treatment? Also would this come off my final settlement fee or would it be set aside for medical costs?

    Kind Regards,

    Lewis

    Reply
    • Ian Morris

      If you accept an interim award, the amount provided will be included within your total settlement, so when final settlement is paid, any interim payment will be deducted from the total agreed. Whether or not the defendants would agree to further medical or rehabilitation therapies if the proposed treatment does not resolve your symptoms is unknown, much will depend on the agreement on any medical experts report and recommendations.

      Reply
  • Sam

    Thanks for your reply Ian.

    How long do the third party have to accept or reject such an application ?

    Regards

    Reply
    • Ian Morris

      There is no specific time frame for agreeing to an interim award, but such a request is usually dealt with pretty quickly – within a few weeks.

      Reply
      • Shane

        I have been waiting 6 weeks for a decision on a interim payment and my solicitor has sent multiple requests and still heard nothing.

        I am struggling financially and have been out of work two years after a car crash while I was stationary.

        This caused multiple injuries, had spinal fusion and it’s been 7 months and no improvements and the spinal surgeon says there is nothing more he can do unfortunately.

        Reply
        • Ian Morris

          There is no guarantee that an interim award will be paid by the defendant as there is nothing to compel a defendant to make an award of this nature even if they have admitted liability. However, in cases where liability is not denied and injury symptoms are serious with considerable impact on a claimants ability to earn, it is usually the case that interim payments will be made.

          Reply
          • Shane

            Thank you kindly for your response, I have been out of work as a managing director for two years and I am in a very serious as I struggle with day to day tasks. I can’t walk to long and I struggle to get out of bed too, my wife helps me wash and using the toilet is very difficult. The pain is consistent day and night but the pressure builds up as the day goes on and by the time it’s afternoon the pressure is very intense and I struggle to do anything. I had spinal fusion 8 months ago and all symptoms has come back as before. I have been awarded Personal independence payment and been assessed by two different companies to obtain both elements. I can’t climb stairs very well and even standing to long without adjusting my position hurts. Pain and pressure in my lower lumber area is constant and I am struggling financially. All this information has been passed on by my advocate and I applied for the interim payment in the end of July 2021. My advocate has sent three chasers to the third party but still no response.

          • Ian Morris

            Given the obvious severity of your injuries and the clear impact that it is having on you physically and financially, one would expect a defendant (if liability is not in dispute) to agree to a reasonable request of an interim award. Have you discussed with your Solicitor the option of putting a request for an interim award before a Judge?

          • Shane

            Again thank you for your reply, yes the defendant admitted liability immediately, he was travelling in a van in a 40mph road and I was stationary in traffic on a small bend. He ploughed straight into my vehicle and after he said that his foot slipped of the clutch which I don’t believe that at all but anyway he admitted liability to his insurance company that same day. On your reply about a judge helping to secure a payment that is something I will ask my solicitor today and I really appreciate your advice. Thank you

          • Ian Morris

            Good luck with your claim and thanks for sharing your situation with us.

  • Samuel

    My injury happened over two years ago, all medical reports have been done, one of the symptoms was diagnosed as ptsd im still suffering with anxiety when driving as my job is hgv. My doctor signed me off for two weeks I’ve sent the fit note to my employer, I’ve already had an interim payment of 1000 a long time ago and I’m still waiting for a decent offer, my solictors have valued my claim at 14000. Will I be entitled to another interim payment ? My claim is currently at the directions questionaire.

    Reply
    • Ian Morris

      There is every possibility that you would be able to obtain a further interim award and you should discuss this with your Solicitor.

      Reply
  • Allan

    I am year in to my claim and have not been able to return to work due to the injurys the person responsible has accepted liability as it happened at work. I was self employed so I’m not getting paid. Do I qualify for an interim payment? My solicitor is saying we have to wait till medical reports are in before we can apply for a interim payment.

    Reply
    • Ian Morris

      You don’t necessarily have to wait for the medical reports, but it would probably be a sensible move to await them if you can hold off. There is no obligation for the defendant to make an interim award, but given the fact that liability has been admitted, it is usually something a defendant will agree to – so long as the interim amount requested is not excessive.

      Reply
  • SAM

    My interim payment has been refused by the defendants. However my solicitor has offered my medical records to them in exchange for the interim payment. Is that a positive move and what’s the reasoning behind this do you think please?

    Reply
    • Ian Morris

      Defendants have no obligation to make an interim payment, but where liability is admitted and injury severity understood, it is usually possible to obtain such a payment.

      In this case, your Solicitor appears to be providing evidence of the injuries and severity to the defendant. This should help to indicate to them the potential value range of an approximate final settlement and they may then feel more comfortable in releasing an interim award to you.

      Reply
  • Sam

    Hi again Ian
    Thank you for the last message it was very helpful.
    I have spoken to my solicitor who states he will ask for 5000 interim payment. Is this a reasonable amount considering I’ve had no income from work for over a year now and I’m unlikely to be able to work in the near future. Also we have bills and debts mounting up since I had to finish work and the amount exceeds the £5000 that my solicitor is asking for.

    Reply
    • Ian Morris

      Have you asked your Solicitor if they can attempt to recover your loss of income for the previous year as an interim award?

      Reply
  • Sam

    I have changed my solicitors in my personal injury case and they are only charging me 20% of any compensation that I may receive. However my previous solicitors rates were set at 25%.
    Is this because I have a strong case or high value case or am I looking at it all wrong?
    Also the defendant has admitted liability for my injuries on the grounds of no manual handling training and risk assessment.
    However causation is yet to be proven. Does the admission of liability in the first instance mean that I will win my claim please?

    Reply
    • Ian Morris

      The standard basis for No Win No Fee claims will see the claimant face a contribution of 25% of any awarded damages should they succeed, with no costs whatsoever should their claim fail. This sum is negotiable though and if a Solicitor is aware of an admission of liability or believes a claim is straightforward, they will be happy to reduce any success deduction if at all possible. However, in your case the new Solicitor will have to pay some costs to the previous Solicitor if they succeed as per the lien costs agreements between Solicitors in such cases.

      As liability is admitted, it should mean that you will win your claim. However, the causation issue will need to be admitted before your compensation settlement can be obtained.

      Reply
  • Rebecca

    I was involved in a car accident two months ago and instructed a solicitor at the beginning of February. The letter has been sent off to the insurance and a interim payment of 30k has been asked. (Suffered facial and serious spinal injuries) they have 21 days to accept liability and agree to the interim payment. How long would you have a guess to that I will receive the interim payment?

    I am currently off work for many months living of SSP!

    Thank you for your help.

    Reply
    • Ian Morris

      There is no legal requirement for an interim payment to be made, but if liability is admitted it is usually something a defendant is willing to provide. In this case, if the defendant were to admit liability and agree to an interim payment being made, from the date of the agreement, you would expect payment within 21 days in normal circumstances.

      Reply
  • Andrew

    I won my case a while back, i’ve had two interim payments of £5k each in the past 2 years. This week I was informed I need quite alot of therapy which mounts to £17k, I also this week had an interim payment of £30k but most of it is being held to pay for this therapy which if course is understandable.

    I know any interim payments come off the final settlement so does this mean that I’m paying for all this therapy myself or can I claim in back?

    Thank you, Ian.

    Reply
    • Ian Morris

      The costs of the therapy should be part of the total settlement agreement. It would seem that the recent interim payment is made to fund the rehabilitation therapies rather than direct compensation for you (if you understand). When your Solicitor agrees final settlement, the total value agreed should reflect the costs of therapy too.

      Reply
      • Andrew

        Thank you, Ian

        Reply
        • Ian Morris

          You’re welcome.

          Reply
  • James

    I have asked for an interim payment because my claim could take up to a year due to the severity of it the insurers have accepted liability but its been 7 weeks and my lawyer keeps saying she’s continuing to pressure the insurers for an answer. Is this normal? I was told i would have an answer within the first 3 to 4 weeks and hopefully have a payment in 7 to 8 weeks, and as i say its been 7 weeks with no answer, i cant even work because of my injuries.

    Reply
    • Ian Morris

      Your situation is sadly quite common. There is no obligation on an insurer to provide interim payments – even when liability is admitted.

      Reply
  • Chris

    Hi,

    I’ve been told by the claims company I am dealing with that I will be offered an interim payment by the defendant as an offer could not be settled, although I have not requested one.
    This means that there will also be court proceedings to reach a settlement. Does this sound right to you?

    Thanks

    Reply
    • Ian Morris

      I assume that liability has been admitted – that is that the defendant has agreed that they will owe you settlement – but that they cannot agree on the settlement value? If so, what you describe seems correct.

      Reply
  • Sam

    I have a personal injury claim ongoing where liability has been accepted by the defendant, save causation. Am I entitled to an interim payment please?

    Reply
    • Ian Morris

      No claimant is automatically entitled to receive an interim award. However, where liability is admitted, the possibility of obtaining such a payment increases and can be requested by a claimant and their Solicitor.

      In your case, as causation is not yet agreed, there may be quite a bit of wrangling over the potential value of your claim. As such, the defendant may be reluctant to provide an interim settlement, especially if the amount requested is substantial.

      There is no harm in making a reasonable request for an interim award – perhaps to cover some loss of income or some living expenses/rehab therapy costs etc from the defendant.

      Reply
  • James

    Once you’ve requested an interim payment how long do they insurers have to contact you back and make a decision, and if it’s a yes, how long does it take to receive the money in your bank?

    Reply
    • Ian Morris

      There is no prescribed timeframe in such circumstances, but one would usually expect a response within 3-4 weeks. If an interim award is agreed, payment should be with the claimant within 21 days or so.

      Reply
  • Carl

    My son has been given an interim payment, but my solicitor is holding it in there bank, they say, they can’t legally release it untill I become his deputy. But the judge and the other side issued it to my son. Is my solicitor right, or should my son receive the money?

    Reply
    • Ian Morris

      It would appear that your Solicitor is acting correctly in requiring relevant paperwork to be in place before they release the funds provided. This should be easily resolved and your Solicitor would be able to help you through the process to enable them to release the funds.

      Reply
  • Claire

    I was offered an interim payment back in November 4th 2020.
    I still haven’t receive this how long do you think I may have to wait for the payment and do I put it all on my care or do I use it for both my care and bills?

    Thank you for you help.

    Reply
    • Ian Morris

      Usually an interim award would be with the claimant within 4-6 weeks of the agreement to make such an award.

      In terms of what you use the award for, that is up to you. However, should you continue to need further care and fall behind with costs and bills, keep a record and your Solicitor will seek to recover as much as is legitimately possible via your special damages claim as and when you settle this matter.

      Reply
  • david

    Should my solicitor have automatically taken 25% from my £3,900 interim payment?

    Reply
    • Ian Morris

      The Solicitor is allowed to deduct up to 25% of the total settlement value – as they have already taken 25% from the interim award – which is allowed, they must include that sum in their final calculations. So long as they don’t deduct more than 25% of the final total (the interim value plus the final settlement) then that is acceptable.

      Reply
  • Debbie

    I instructed a no win no fee solicitor after a car accident. I have been paid most of the agreed settlement but the other parties solicitor didn’t pay all the monies due. I am now struggling to get the final amount and my solicitor isn’t being very forthcoming.
    What can I do?

    Reply
    • Ian Morris

      Have you asked your Solicitor for an explanation of the situation in writing? It is always sensible to seek written assurances/explanations in such situations and it could well be the case that your Solicitor is still trying to get the final balance from the defendant.

      Reply
  • Danielle

    How long after a letter of interim payment will I receive my cheque? My solicitor says 1-2 weeks but not heard anything for a while

    Reply
    • Ian Morris

      It would normally be expected within 3 weeks or so of the receipt of agreement to make such an award. However, due to Covid-19 and many staff having to work remotely, some processes are slower than normal and this may explain the delay in your case.

      Reply
  • Lee

    Hi I was in a bad car accident 1 year ago I was a passenger I suffered muitble face lacerations. my eye lid needed stiches and suffered a spine injury I have now seen the spine specialist and need a operation I had £3000 interim 4 months ago, can I request another one?

    Reply
    • Ian Morris

      You can request a further interim award and you should discuss that with your Solicitor. There is no obligation for a defendant to make interim awards but given the severity of your injuries and the impact on your ability to earn as normal, it is reasonable to request a payment and likely that you will obtain one.

      Reply
  • Michael

    I was offered an interim payment but I was then told that the client was declining it due to me seeing their psychiatrist first?

    Reply
    • Ian Morris

      It is likely that they simply wish to know what the report of the psychiatrist will hold before deciding on the interim and final settlement awards.

      Reply
  • Theresa

    If liability is admitted, 2 interim payments are paid, then the defendants say it was your fault, do you have 2 pay back interims?

    Reply
    • Ian Morris

      If the defendant had uncovered evidence that showed you had mislead the claims process and that your actions had lead to them admitting liability where they would otherwise have denied it, you would have to repay any settlement and could face legal action.

      If however, the defendant has now changed their mind and wishes to withdraw their admission, they will need to provide strong evidence to support such a change and you should discuss that, along with the previously provided interim awards with your Solicitor.

      Reply
  • Ian Morris

    There is no set rule for such payments, but if the fee was due on the 8th, your Solicitor should be chasing it if it has yet to arrive with them.

    Reply
  • Raine

    I was injured at work and despite changes in the way the visit to that home address are now conducted, my employer does not accept any failure on their part to Adequately protect staff. I have had 2 operations so far to repair the damage to my hand, as a nurse my hands are essential!
    They are offering £4000 as a goodwill gesture but I must sign to say I will take it as full settlement. Is this the right route to take? I requested a counter offer of £20,000 for recompense of list income, expenses and suffering, but they have refused and offered the 4K with terms as written above

    Reply
    • Ian Morris

      Do you have a Solicitor acting for you? If not, we would not recommend that you accept any such offer until you have had qualified specialist advice.

      Reply
  • Carla

    I have had an interim payment & the solicitor took off their 25%, is this correct procedure? I’m still waiting for final settlement figure.

    Reply
    • Ian Morris

      So long as the total deducted at the end of the claims process does not exceed the agreed amount (usually 25%) of the total compensation, then their deduction from the interim award is correct.

      Reply
  • Angela

    My solicitors as taken 15% off my interm payment before I get my medical why have they done this i tbought that they would do this after the settlement as been accepted is this right?

    Reply
    • Ian Morris

      So long as the total deduction from the interim and final settlement does not exceed the amount you agreed to in your Conditional Fee Agreement then your Solicitor is acting correctly.

      Reply
  • NOEL

    If a company has admitted Liability in a personal injury claim and I have applied for an interim payment, how long should it take for them to agree or disagree payment?

    Reply
    • Ian Morris

      Even in a case where liability is admitted, a defendant is not obliged to make an interim payment, unless directed to do by in a court judgement. However, in cases where liability is not in dispute, it is usually possible to obtain an interim award. A defendant will usually respond to a request for an interim award within 15 working days and if they then agree to a payment, that should follow fairly quickly afterwards.

      Reply
  • Berty

    Hello I had an accident at work back in may 2018 witch has resulted in a laceration and in me having permanent nerve damage in my right hand between my index and thumb, they accepted liability, prognosis period of 18 months has passed In October 2019 and seen my second hand specialist in February 2020 and he has determined it permanent damage, what is the compensation range for such and injury and should I really still be waiting for settlement after prognosis period passed in last year?

    Reply
    • Ian Morris

      Given the permanent injury you have sustained and the impact that such an injury will have on you (given that your injury is to the hand – a vital body part for independence, dexterity and personal ability), it is not a surprise that your claim has not settled at this time. Although 2 years has passed since your accident, it is not unusual for such a case scenario to see a claim take a long while to settle.

      Reply
  • Dan

    Hello,
    How is the interim payment calculated?
    Is it a set percentage from the final settlement?

    I ask these questions as I haven’t requested for an interim payment as I am still receiving a full pay packet, and they haven’t supplied me with the final settlement figure.

    I had a low impact car accident[10th Nov 2019], and the 3rd party agreed full liability within the next day, the injuries I had suffered are damage to both knees(which an MRI scan shows the damage and may require surgery) whiplash which is lasting longer than 5months, and lower back pain which has eased a lot but isn’t like it was before the accident.

    I have had a medical provided by my solicitors who states I should recover all injuries by 5months. Which isn’t the case, How much would you recommend I should receive?
    They have offered £2,500.00 which I believe is very low (this was from my solicitors after the medical). I rejected pending MRI from my own private health care.

    Hope you can help answering the questions as I have never done anything like this and its all totally confusing.

    Reply
    • Ian Morris

      As you may appreciate, without having full sight of medical records and the opinion of both a medical expert or expert Counsel, it is not possible to offer specific claim values. However, it would appear that your view of the offer being low is one we would agree with. Therefore, awaiting the outcome of the MRI scan you mention is a prudent move.

      In terms of interim awards, there is no hard and fast method for calculating the amount that can be obtained. An interim award is not something that you can enforce, but instead you can request the same when liability is admitted. In cases where the full extent of an injury or loss is not fully appreciated – such as your situation, a defendant may make an interim payment to assist a claimant who may be in financial hardship as a result of the injuries sustained or may require specific equipment or therapies etc. In most cases, a Solicitor acting for a claimant will discuss the appropriate interim payment ‘offer’ to make to a defendant with the claimant and it would usually be for cost of living expenses or some lost income or expenses.

      The amount of any interim payment will be included in the final settlement value. For example, if a claimant was given an interim award of £1,000 and the final settlement value was £10,000, the final payment would be £9,000 as £1,000 had already be awarded. Interim awards and final settlement values will be subject to the 25% deduction agreed in the Conditional Fee Agreement signed when instructing the Solicitor on a No Win No Fee basis.

      Reply
  • Michael

    I tore my ACL and meniscus in my left knee on the 20/10/19 in work due to accident. My company has accepted liability and I am currently awaiting a operation for ACL reconstruction and meniscus repair. I am currently on company sick pay which is literally just above SSP so my money situation is bad. Looking forward with the coronavirus at present I think I’m looking at operation and recovery time going past another 12 months minimum. Would I be eligible for any interim payments as I’m used to bringing home £1800 p/m and gonna be a while before I get that again.

    Reply
    • Ian Morris

      Do you have a Solicitor acting for you in your claim for personal injury compensation? If so, they should be enquiring as to the possibility of obtaining an interim award – perhaps some loss of earnings etc. As liability has been admitted, there is a possibility that you could get such payments. However, there is no legal requirement for interim payments to be made.

      If you are not currently represented by a specialist personal injury Solicitor, please call us on 01225430285. Our No Win No Fee service can help you instruct a specialist Solicitor to ensure that your legal rights are upheld and that you are appropriately compensated for your injuries.

      Reply
  • William

    My accident was over 2 Christmas ago I’ve still not received a interim payment even tho my solicitor has stated they received it and were awaiting it to clear! Should I have received this by now also he is saying that I can’t get my loss of earnings even tho I’ve provided everything! I’m very unhappy with the law company’s service and lack of communication with me.

    Reply
    • Ian Morris

      If your Solicitor has received your interim award, there should be little delay in them then forwarding payment to you. Of course, you need to allow payment to clear with them and be processed, but that should not take too long.

      Reply
  • Frankie

    Hi,

    I have an ongoing personnel injury claim, the injury was in 2016 and I appointed the solicitor in 2017. I ruptured the UCL ligament in my thumb on my dominant hand at a work event, they admitted liability very early on (in 2017). I’ve been offered an interim payment of £10,000 but not yet received it. My question is, are my solicitors supposed to deduct 25% from my interim payment? As I’ve been getting conflicting information from my barrister and my solicitor and now have no idea where I stand with this.

    Also, am I able to request a mediation meeting between the two sides rather than going to court? As liability was admitted at such an early stage, all medical reports have been attained which the defence is not contesting, I’ve been granted the interim payment and recently at a Costs and Case Management Conference both sides stated that this could be dealt with in mediation rather than court. However, I feel that my solicitor seems to be much more focused on going to court than settling this with my best interests in mind, I’m concerned that this may be due to their fee’s being 5x as much if it does go to court. I’m not concerned about my case going to court but rather more concerned with the time frame, this has been ongoing for several years already and the court date is set for April 2021, I feel if this can be resolved now through mediation it should be. Unfortunately I have very little faith or trust in my solicitor due to past mistakes with my case, what would you suggest in my situation? Should I push for mediation or allow it to go to court?

    Many thanks for any help you can offer!

    Reply
    • Ian Morris

      As you will appreciate, it is not possible for us to comment on the actions of your Solicitor in terms of whether or not they are acting in your best interests. Whilst your concerns about the court route are understandable, your Solicitor is most likely to be of the view that you will receive the best outcome by taking that course of action – or at least keeping it on the table.

      If you are not happy with your Solicitors actions and feel that the handling of your claim should be reviewed, you should refer to the complaints policy of your current Solicitor and allow a senior partner within their firm (who has not handled your claim), to review the work undertaken and respond to you.

      With regards to the deduction from your compensation, the Solicitor should not deduct any more than a maximum of 25% of any compensation awarded to you IN TOTAL. That should include the interim award and your final settlement. Should any element of your final settlement include future loss of income or future medical costs, there should be no deduction from that part of your claim.

      Reply
  • Angela

    I have requested a interim payment and they said I have to attend a medical. I don’t understand why, as they have accepted liability already! Why have they requested this as my injuries are very serious?

    Reply
    • Ian Morris

      The defendant may well have accepted liability – that is them admitting that their insured was negligent and that they are therefore liable to compensate you for your injuries and losses. What they now need to do is to gain an understanding of the severity of your injuries and the longer term prognosis for your recovery or otherwise. The only way to do this is to have an assessment by an independent medical expert. The expert will provide a report that can then be used to reach a fair settlement valuation for your claim. You have nothing to fear by attending a medical, indeed, if you are severely injured, a medical experts report will benefit your claim and your settlement.

      Reply
  • James

    Hi I have been waiting 2 years so far. I suffered a car crash with, back, bowel and psychological injuries. My claim is still ongoing and am beginning to feel the strain on living of disability benefits since the accident. I have to see further specialists this year and doubt that a settlement will come anytime soon. Would you think an interim payment be made in these circumstances?

    Reply
    • Ian Morris

      Yes, if liability has been admitted in this claim, you could request an interim payment.

      Reply
  • Leeanne

    Hello,
    I have been waiting three years now to settle my case after being injured in a gas explosion. My solicitor contacted me today and asked me to request a £5k interim payment, I said I had no requirement to request the money up front and he then said could I at least agree to £1k upfront. I feel like there’s more to this than they are telling me what are the pros and cons of requesting an interim payment? And why after all this time are they suggesting it now? Thank you

    Reply
    • Ian Morris

      Interim awards are usually requested when a claimant is in dire straights financially and needs some funds to enable them to continue to ‘survive’ before final settlement is made. As to why your Solicitor wants you to request an interim award, we cannot say – but you should question them!

      Reply
  • Damien

    Hi, I had been offered interim settlement of 5% of the maximum benefit which insurer said would be £10000. So it’s £500 for interim settlement paid now. I understand interim settlement it’s or should be little amount to help with day to day expenses. I was 6 months of work and have a lots of debts to pay now and I don’t feel like £500 would help a lot. Can I refuse or negotiate for let say 10%? I haven’t got solicitor and this is a time to get some involved I think. I’m not accepted anything yet.

    Reply
    • Ian Morris

      You mention that you do not have a Solicitor representing you. Whilst you appear to have reached a point where the defendants have admitted liability in this matter (which is a good achievement), it is now clear that you would benefit from having specialist legal representation to ensure that your rights are protected and enforced in full. Whilst instructing a specialist Solicitor to act for you would see you signing up to a No Win No Fee agreement that would mean you would contribute up to 25% of any award made to you, it would still represent the best way forward given the appropriate professional and qualified representation you would receive.

      You can negotiate on interim and final settlements and you are wise to not accept anything at this stage. Our recommendation would be to ask us to contact you so that we can take some details from you and place your claim with a suitably experienced and qualified expert Solicitor to represent your best interests.

      Reply
  • Theresa

    If a company admits liability, then your solicitor asks for an interim payment, what if you then lose the case, do you have to give the interim back? Thanks.

    Reply
    • Ian Morris

      An interim payment will not be made unless an admission of liability has been made by the defendant in a claim.

      Reply
  • Lee

    I went to court 2 weeks ago and won liability against my employer for my injury. The judge ordered that my employer pay a £20000 interim payment until settlement is agreed.
    How long have they got to pay the interim payment to me?

    Reply
    • Ian Morris

      If the Judge in your case did not prescribe a deadline, it would be reasonable to assume that the interim settlement should be awarded within 3-5 weeks of the date of the hearing.

      Reply
  • Vicki

    My solicitor has agreed a settlement and I will get paid in 2 instalments. Is it fair that my solicitor takes out all her fees owing on the first instalment?

    Reply
    • Ian Morris

      Of course, it is reasonable for a Solicitor to deduct their fees, but in most cases a Solicitor will work with the claimant to ‘share’ the burden of waiting for settlement to arrive.

      Reply
  • Carel

    How long can it take after court order to pay out the interim payment and on my interim payment, can my solicitor take a deduction from the monies?

    Reply
    • Ian Morris

      In most cases, once an order has been made from the courts, receipt of funds should be fairly speedy. If there is no specified timescale made in the order, we would anticipate you should have the interim award within 3-5 weeks.

      With regards to the deductions from an agreed personal injury settlement, a Solicitor may make a deduction from both the interim award and final settlement. This is fine, as long as the total deduction does not exceed 25% of the total settlement and the cost of any provided ATE cover.

      Reply
  • EAMONN

    Can a second interim payment be made by defendant without medical records?

    Reply
    • Ian Morris

      It is unusual for a 2nd interim payment to be made, but it can be requested and received.

      Reply
  • Michelle

    I received compensation for my son who will be 16 on the 24th of December 2019. Can I cash my sons cheque as it’s in my name?

    Reply
    • Ian Morris

      You need to be aware that the compensation you have received is for your Son and not for you. Whilst you can spend reasonable amounts on items that will be of benefit to your Son, UK law would give you a legal responsibility to ensure that his compensation is available for him when he reaches the age of 18 years.

      Reply
  • Caroline

    How long does it take to get a interim payment once applied for?

    Reply
    • Ian Morris

      The process of receiving a response to a request for an interim award from a defendant would usually be somewhere between 2-4 weeks. If the response is positive and an agreed interim settlement value is reached, one would expect to receive the interim award within 3-4 weeks of the agreement on the value.

      Reply
  • Dee

    Hello,
    I was involved in an RTC in Feb 2019. I was a passenger and occurred multiple injuries I have been sent a form from the insurance asking to confirm if I will accept the Interim payment offer of £1000. My question is, if I refuse what will this do to my overall claim? Will it affect it in anyway?

    Reply
    • Ian Morris

      Is there any reason why you would wish to refuse the interim award? An interim award is usually an amount that is far smaller than the expected settlement and is made to simply help the claimant cover some out of pocket expenses caused by the incident. Refusing the interim settlement should not impact on your claim but you should certainly discuss this with your Solicitor before you make any final decision.

      Reply
  • Mark

    Can I get an advance on my personal injury claim?

    Reply
    • Ian Morris

      You cannot obtain an advance on a claim for personal injury compensation. Such payments are not allowed and would contravene regulatory restrictions.

      You can however seek to obtain an interim payment from a defendant should your claim succeed. This would apply once an admission of liability has been obtained by your specialist Solicitor and before the full extent of the claim had been fully agreed.

      Reply
  • Tracey Hardman

    I’ve been offered 11.500 for injury and anxiety after my solicitor asked for interim payment. Should I take first offer?

    Reply
    • Ian Morris

      Without knowing the full facts of your claim (something we would only know if we had full sight of the file and medical reports etc), it is not possible for us to comment on the appropriate valuation of your claim. However, it is not uncommon for a defendant to make an initial offer at the lower end of the appropriate claim valuation range. As such, you should discuss the offer you have received with your Solicitor, to see if they feel that it is a reasonable offer or whether or not you should reject it and hold out for a better settlement. My gut feeling is that you should reject the offer (unless your Solicitor says otherwise) as you would probably receive a better offer after negotiation.

      Reply
  • Suzy

    Hi I have just accepted an offer of compensation fully funded by my union, my solicitor has phoned and asked me to sign an authorization to say they can make the Cheque payable to him and he will pay me. Is this normal practice, he says it’s something to do with money laundering?

    Reply
    • Ian Morris

      Yes, that is standard practice and you should not be concerned – as long as you have instructed a bonefide Solicitor. If the Solicitor was instructed via your Union, you need not be concerned.

      Personal Injury Solicitors are obliged to ensure that the money laundering regulations are followed in settlement of the claim. Therefore, the settlement will be paid in to the Solicitors ‘client account’ and then forwarded to you. A client account is not something the Solicitor can access for personal or business gain and offers protection for you as the claimant.

      Reply
      • Suzy

        Great, thank you for taking the time to answer my query, you have put my mind at rest.

        Reply
  • L legge

    I was injured and have claimed on the afcs.
    I received an interim payment of £6000 and was told this would be reviewed in 12 months. Which takes me to now.
    My injury hasn’t been ‘cured’ as such. Hip injury and I am still doing intense physio.
    I am curious as to whether I will be likely to receive another interim payment as the extend of injury has not be discovered yet as treatment is ongoing.
    Also, how is interim payments calculated? Would I be expected to receive the same when the claim is settled or less (minus the interim of course)?

    Reply
    • Ian Morris

      It is uncommon for more than one interim payment to be made, but it is not impossible to receive a 2nd interim payment (or even additional ones) should it take a long time to fully evaluate an injury and loss to reach a final settlement value. Have a read of our hip injury article for more info on compensation amounts.

      Reply
  • Eamonn

    Should an interim PAYMENT be agreed is there a limit on that amount while final figure is still to be agreed?

    Reply
    • Ian Morris

      There is no prescribed limit for an interim payment or award in a claim for personal injury compensation. Of course, a defendant will not fund an interim settlement payment that is likely to exceed the total value of the final settlement. In personal injury compensation claims where an interim payment is made, the value of such a payment is usually relatively low and it is common for an interim award to cover an element of agreed loss, such as incurred travel expense or loss of income caused by the accident that lead to the claim.

      Reply
  • Eamonn

    Once applying for a court date for interim PAYMENT claim, what is the length of time from application to court date?

    Reply
    • Ian Morris

      There is no prescribed timescale for court date provisions. It really depends on the amount of work the court has to deal with and how busy that particular court is.

      Reply
  • Ian

    Can you have more than one interim payment while waiting for the full settlement?

    Reply
    • Ian Morris

      Yes, it is possible for more than one interim payment to be made during the claims process, although it is unusual. Such incidents would usually occur only in claims of higher value where establishing the full extent of injuries, and subsequent value of the claim will take longer than usual.

      Reply
  • Jamie

    My partner fell over in a supermarket 6 months ago. Broke her kneecap in two. She has been unable to work since as she underwent major surgery, her kneecap was wired back together. On cruches and unable to drive. The company has admitted full liability, and agreed to pay an interim payment. Her solicitor asked what minimum she would take. She said 2k, thinking on this would it be too much to ask for her lost earnings from last six months. We are struggling without her income, had fallen behind with rent, thanks parents, and likelihood of her being able to return to work anytime soon seems at best a fantasy.

    Thanks in advance.

    Reply
    • Ian Morris

      If liability has been admitted, then it may become possible to agree with the defendant that they will make an interim compensation payment for the loss of income incurred since the accident. However, before such a payment will be agreed, the severity of injury must be agreed by the defendant. This is because they will need to agree that the injury warrants such a long period of lost income. Of course, with the type of injury you describe, there is most likely to be permanent implications as a result of such damage. Such injuries are typical in slipping accident compensation and as long as a medical assessment has been carried out and the report agreed to, an award such as the interim payment you suggest is not unreasonable.

      Reply
  • Ian Morris

    No legitimate personal injury specialist working within the United Kingdom personal injury legal system will make up-front payments in any claim. Compensation will only be awarded when a defendant insurer has admitted liability and agreed to the level of damages to be paid. Although the Police appear to have assigned fault in this matter, that does not guarantee that a defendant insurer will admit liability.

    Reply
  • James

    I have received an interim payment from my solicitor in cheque format. I would like to know if I were to cash this cheque, would that potentially close my claim to anything else? Or as many replies have mentioned, it’s just a partial payment that may have to be paid back if the court awards me less?

    I’m guessing that because my solicitor has already accepted this money from the insurance company. That it’s ok to cash from their account into my account.

    Reply
    • Ian Morris

      It is absolutely fine to cash the interim payment you have received. An interim payment is only made after liability has been admitted and the insurers will not have paid an amount that they believe to be anywhere near to being greater than the final value of the claim settlement. Therefore, when your claim is settled in full, the amount of the interim payment award will be included in the total and considered already paid. For example, if you have received an interim payment of £1000 and your final settlement value was agreed at £3000, you would receive a final settlement of £2,000 to make the total of £3,000. Of course, you would also face a deduction from your settlement of up to 25% towards the costs of the claims process.

      Reply
      • James

        My solicitors have already deducted their 25% fee from my interim payment of £2600. Are they allowed to do that? Their words in the letter are “an interim payment equivalent to their final offer. We will now go to court and hope to get you some more”

        This doesn’t sound like normal practice for an interim payment let alone normal professional practice to go to court and hope to get more.

        Thank you for your swift and informative reply.

        Reply
  • scott

    If you get accepted for an interim payment how long does it take to process?

    Reply
    • Ian Morris

      When an interim payment has been agreed and the amount to be paid has been accepted, the approximate time frame for the claimant to have cleared funds is usually around 21 days (from the date that signed acceptance of the interim payment is received by the defendant insurers).

      Reply
  • Elizabeth

    My grandson was offered an amount as the settlement of his claim and he signed to say he would accept the amount stated. He then received an email from his Solicitor to say that he had received a cheque from the other side but for a lesser amount, and deducted an interim payment – which we were never told in correspondence, telephone,or meetings including the last one when he signed to accept the offer in the solicitors office! Is this legal?!

    Reply
    • Ian Morris

      If any interim payment award was made to your Grandson during the claims process, the final settlement would include that interim payment (which would be deducted at the end) so that the full settlement received by your Grandson also included the interim award. For example, if a claimant received £1000 as an interim payment during their claim and agreed a final settlement of £3000, they would not receive a final settlement for £3000 but £2000. Of course, they are also going to have to make their 25% contribution too.

      If you think that the Solicitor has acted incorrectly, you must address your grievance to them immediately. Look on the Solicitors website as it should have a published complaints procedure that will explain how they would investigate such a complaint. If they are then unable to satisfy your complaint and you still have concerns that something untoward has happened, you can then go to the Legal Ombudsmans Service.

      Reply
  • Rainy

    Hi. I had a bus accident three years ago, I was coming home from work and the bus crashed into a car and went reeling into the front of two houses. The bus driver admitted fault and was found guilty. Also the bus company admitted liability. That was all within 6 months of the accident.
    After three very long drawn out years I have had the final medical assessment and been dismissed by the psychologist I was referred to. All the paper work has now been submitted to court and I know the I’m on the last leg of it being finalised.
    However, seven weeks ago I had do give up work due to still suffering from the injuries so I ask if I could apply for an interim payment. To date my solicitor still hasn’t heard from the court and apparently is going to ‘chase it up’ some time this week. She said I should be receiving an application form shortly for me to apply. . Once I’ve filled in and signed this application form how long will I need to wait for the payment?

    Reply
    • Ian Morris

      The wait should be fairly short – a matter of days, but of course the application will have to be accepted first.

      Reply
  • Rainy J

    Three years ago, the bus I was travelling home from work on crashed into two houses, I was injured and off work for eight months. I am still suffering from the injuries and have now had to give up work altogether. Eventhough my compensation claim was fairly straight forward and the bus company has admitted liability and all the medical evidence is up to date, I still haven’t yet received any indication as to when this will all be finalised. .Three weeks ago my solicitor said she is still waiting on medical evidence, I am wondering how much longer this may take before I receive a settlement
    Also five weeks ago I applied for an interim payment , I phone my solicitor every week on this but all I’m told is that it’s being chased up. How much longer will an interim payment take to process

    Reply
    • Ian Morris

      You have clearly been badly injured as a result of the serious accident that you describe. Given that you are still suffering from the injuries and are unlikely to recover fully it is very important that your Solicitor ensures that the fullest and best medical evidence is obtained in order to ensure that the value applied to your claim is maximised.

      Whilst there has now been 3-years pass since the accident and we appreciate that this amount of time is a long time to be waiting for the claim to move on, it is not unusual given the amount of damage this incident has caused to you and your life.

      With regards to interim payments, your Solicitor should be able to reach an agreement with the defendants on this matter in order to obtain an interim payment for you, particularly with regards to some loss of income as this is unlikely to be disputed whereas the amount of compensation for the listed injuries is something that is usually disputed a little more.

      Whilst it is frustrating for you to have to wait and you feel as if you are chasing your Solicitor, it is most probable that your Solicitor is doing all that they can and that they are simply having to wait for defendant responses.

      Reply
  • Adrian

    Good Afternoon,

    Last week i signed claim valuation offer a couple days after my solicitor disclosed my claim and sent it to the third party.
    I would like to know how long will take for me to receive interim payment or full compensation from the third party via my solicitor?

    Reply
    • Ian Morris

      if admission of liability has been obtained in your case and an agreed interim payment sum has been reached, it should be a fairly quick process for you to obtain the payment. The payment should go from the defendant insurer to your Solicitor who would then forward the sum to you.

      Reply
  • Jill Fenwick

    Hi there, if I received an interim payment before my settlement would the interim payment be deducted from my full amount? Thanks.

    Reply
    • Ian Morris

      The answer is yes. It is not uncommon, particularly in cases where the level of damages is more substantial or where there is a large loss of income, for a defendant to make an interim payment to the claimant when they have admitted liability in the claim. In admitting liability, a defendant agrees that they are responsible and will therefore make a settlement to the claimant as a result of the accident and injuries sustained. The claim then moves on to evaluating the total losses and level of injury.

      An interim payment will be made to help ease the clients suffering whilst they recover or to help cover lost wages and when it then comes to agreeing the full and final settlement, any previously paid interim settlement will be included in that total figure.

      For example, if an interim payment of £5,000 was made to the claimant and the full final settlement value was agreed at £20,000 the claimant would only have a further £15,000 to receive as the interim payment received is part of that final settlement.

      There is of course the obligatory 25% deduction required by law to factor in to the total settlement you will receive.

      I hope this explanation helps!

      Reply
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