Upfront compensation payments before a claim is settled

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

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.  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.

Upfront 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

One word of caution, though, is to 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. 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.  We believe our claims process and way of operating is attractive enough to entice you to instruct us and that the rest of it will take care of itself.

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

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Questions & Answers


  1. B

    Hi, if im offered an interim payment of £1000 what is my claim actually worth please?

    Reply
    • Ian Morris

      Unfortunately, it is not possible to say what the value of your final settlement will be based upon an interim payment of £1,000.

      Interim payments are usually a small amount and are designed to help with financial pressures felt by someone injured and perhaps unable to earn their usual income.

      Reply
  2. 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
  3. 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
  4. 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
  5. Tracey

    Hi I have requested interim payment from my sols as awaiting second offer to settle how long does it take to receive?

    Reply
    • Ian Morris

      If the request for an interim settlement is accepted and the amount agreed, it would usually be between 3-5 weeks until the claimant were to receive the agreed sum.

      Reply
  6. Colin

    Hello , I received a letter and cheque for interim payment with deductions as below :
    Defendants offer :
    Less deductions in accordance with our agreement:
    ATE premium:
    Client contribution:
    Rehabilitation:
    All with an amount that’s been deducted
    What does this mean?

    Reply
    • Ian Morris

      Your Solicitor is entitled to deduct any agreed amounts from any settlement that you receive. This should be capped at a total of 25% of any settlement award made to you (exept for any future loss of income or future medical costs) and any ATE premium paid to set up your claim. Claimants used to be able to recover all of their legal costs and ATE premiums, but the Government changed the system at the behest of the Insurance sector to force claimants to pay for ATE premiums and contribute towards their own legal fees. Rehabilitation fees may also need to be recovered from settlement if they are not being paid directly by the defendant.

      Reply
      • Colin

        Thank you for your response,
        So does this mean the all the deductions less the ATE premium amount to the 25% of the settlement? Also with it being an interim payment and my losses haven’t been recovered yet it seems, as the letter i received didn’t specify, do you think there will be further deduction come out of my losses ie loss of earnings, when the final settlement comes in? I understand that the final settlement would already include the interim payment.

        Reply
  7. 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.

      Reply
  8. 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
  9. 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
  10. G.B

    After breaking my tooth on a stone found In a shop bought food product. I immediately called to complain. They sent me a jiffy bag to send the sample back to them in and a £10 gift voucher.
    After months of agony and waiting for an NHS dentist to be able to take me and look at the tooth it turns out I need root therapy treatment I have decided from this that I want to press a claim in for the injury.
    Although i cant remember actually receiving the £10 gift card for their shop and even if they did then it most definitely hasn’t been spent. Will the supermarket in question count this as compensation for my injury? If so can I argue that i was in no fot state of mind while in the complaint to understand what I was receiving and therefore the supermarket have taken advantage of me in a vulnerable position.
    Any advice would be greatly appreciated
    G.B

    Reply
    • Ian Morris

      The £10 voucher could not be seen as a settlement to any future claim and would not affect your statutory duties to pursue a claim. The £10 voucher is simply an initial act of goodwill and a gesture of apology for your situation. It is not an admission of liability.

      You may have a right to claim compensation, but to do so you’ll need to demonstrate that the stone within the product caused injury and discomfort. The possible cost of dental treatment could be recovered as part of your special damages, but the injury itself would need to be severe enough to warrant instructing a specialist personal injury Solicitor.

      We would be happy to look at this for you.

      Reply
  11. Sean gordon

    What grounds would a interim payment be denied after winning liability from the 3rd party

    Reply
    • Ian Morris

      If liability has not been admitted an interim payment will not be forthcoming, likewise if the amount claimed in an interim payment is excessively high or likely to exceed the value of the settlement, a defendant will deny the claim for such a payment.

      Reply
  12. Lee

    I recently had an interim payment of £5000 how much roughly can I expect for my full settlement?

    Reply
    • Ian Morris

      Without knowing the details of your injury, your recovery and what long term prognosis has been given with regards to your future and the recovery you will make, we could not advise. It is only by reviewing a detailed independent medical experts report that an appropriate value can be assigned to any compensation settlement total.

      Reply
  13. Michal

    Is a lot of tasks fulfilling alone on the shift and being in a hurry something that I can base on as proving the fault of employer when I slip and broken my feet while fast walking ?
    Should my employer pay me the average weekly earning when I was not able to work in contracet days and hours after accident ? – I was paid just statutory sick pay.

    Reply
    • Ian Morris

      There is no obligation for an employer to pay your usual salary whilst you are off work – even if the injuries that are forcing you to be away from work were caused in an accident at work. With that in mind, you will most likely find that you are only paid SSP instead of your usual wages.

      However, you may well have a valid claim for compensation. Employers have a duty of care under the Health and Safety at Work Act and safe working regulations to ensure that employees are provided with a safe working environment. Therefore, if the cause of your fall can be attributed to a dangerous working environment you may well succeed with a claim for compensation.

      Reply
  14. SOLOMON ELPHUS

    can I use my son interim payment to insured his car

    Reply
    • Ian Morris

      Any person can spend their compensation settlement on anything they wish. In cases where a settlement is paid in a claim for a minor, the payment is usually made in to a trust fund or similar that can only be accessed by the claimant upon adulthood.

      Reply
  15. 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
  16. 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
  17. James

    Hi,
    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
  18. mohammed

    hi just enquiry about a non fault car accident with the police written fault by police letter do I have a up front payments for injurys non working disabled.
    back of my car collision my email sdkbr7@googlemail..com

    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
  19. 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
  20. 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
  21. Rita

    Hi I have a claim going on at the moment. They have accepted liability and am awaiting settlement. I requested an interim oayment due to financial difficulties which was agreed. I have only received half and been total other half is being sorted, but it’s been a week now and still no sign. How long should I wait and is this normal

    Reply
    • Ian Morris

      The period of time you describe (1 week) is very speedy and you could usually expect to wait for 21 working days.

      Reply
  22. 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
  23. 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
  24. 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
  25. Mark Swinbank

    I have a friend who has had an accident at work and had to have his leg amputated, the opposition have admitted liability and responsibility. they have bought him a bungalow but are now refusing to modify it so that he can live there. he is currently in a 2 bed terrassed 2 floored house and as such his remaining leg is suffering. this has been on-going for 3 years nearly and I am really worried about the long term prognosis if he is not able to use his wheel chair throughout his house. Is there anything we can try to speed up the renovation to make it livable in?

    Reply
    • Ian Morris

      The fact that the defendants have paid for a property for your friend is a good thing. Has your Friend’s Solicitor liaised with the defendant insurers regarding the need for any settlement value to include a sum for making his home suitable for the needs that his disability presents?

      When settling a claim for compensation, the valuation of a settlement is made up of many things. The various elements of a compensation settlement will include a sum for the injury – based on medical evidence and long term prognosis, how it effects day-to-day life, loss of income, medical costs and fees needed to make suitable alterations to living space. With this in mind, your friend needs to speak with his Solicitor to see if that element has been included in whatever compensation settlement he has already received.

      The other area that he can consider investigating is with the Government and Department of Work & Pensions to see if there are any grants or disability benefits such as industrial disablement benefit that would provide any contribution towards the costs of door widening, stair lifts and bathroom alterations.

      Reply
  26. Tammi

    I received an interim payment of £1000 and they took 25% and the ATE payment which left me £550.01p should they have deducted this from interim payment or from the final settlement?

    Reply
    • Ian Morris

      Whether the deduction is taken at the end of the claims process when your full and final compensation claim settlement value has been agreed or if the deduction is taken from an interim payment, the end outcome should be the same – that you only pay a maximum of 25% from your compensation settlement towards the cost of the claim (with the additional cost of any ATE policy also deducted).

      In your case, you should not face any further deduction for the ATE premium as this has now been settled. You have paid 25% from your interim payment and will have to contribute up to 25% from the remaining settlement that you receive.

      Reply
  27. 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
  28. Justin njoku

    Hi,

    Should the solicitor deuct the 25% and the ATE policy funds from an interim payment that has been made right before the court proceedings?

    Reply
    • Ian Morris

      Justin

      They will deduct the 25% from your settlement when it is made, whether or not that is taken from an interim payment is another matter. It really depends on the size of the interim award.

      The most important thing is to make sure that the full deduction from the full and final settlement award should not exceed the 25% figure, but that will not include the sum that is also needed to cover the ATE policy that was put in place to protect you.

      Sadly, under the LASPO Act 2012, claimants in your position are not able to claim payment of costs for ATE policies. Prior to LASPO 2012, ATE premiums were recoverable and claimants could retain 100% of any award made to them.

      Reply
  29. Damian Cunliffe

    Had rta last friday been diagnosed by gp in regards too whiplash and possible trapped nerve was passanger in work vehicle when another van crashed into us ive also been referred for pysio by my gp also struggling with nerves since accident

    Reply
    • Ian Morris

      Damian

      Hi, this sounds like a painful situation for you and I am sorry to hear about your recent traffic accident. On the basis of your Doctor’s diagnosis I believe you have a valid claim for compensation and as such, should pursue the same.

      Please call us on 01225430285

      Reply
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