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 for an injury claim

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.

If you have any questions on interim payments or want to see if you can claim injury compensation, leave a comment below. Alternatively, call our offices on 01225 430285 or we can .

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Comments & Questions

Read on for questions and advice about claiming...

Hi I had a accident at work . Liability was accepted straight away almost 2 years ago now. I’ve received £1000 interim payment a while ago. My solicitor is very slow and won’t email unless I email her or call her . Ive had many medicals and have a permanent 7 inch scar on face ,been diagnosed with permanent moderate tinnitus and contortions of the median nerves and soft tissue damage. Is this a normal amount of time to take for a injury claim.
Thanks

Ian Morris

Given the extent and severity of your injury, the fact that the claim process is taking the amount of time stated is not surprising. In any claim, it is important to ensure that the full extent of any injury or loss is understood so that an appropriate settlement value can be reached. As you will appreciate, expert reports are needed to provide the evidence needed and this can take time. In your case, you have a large permanent scar to your face and your Solicitor will be mindful that both the physical and psychological impact of that are understood to ensure an appropriate settlement. You also have nerve damage and tinnitus and these issues will require assessments by specialist medical experts who will provide reports to your Solicitor to use for valuation of the claim and future prognosis etc.

With regards to your Solicitor appearing to be slow and not communicating well, you should report your concerns to the firm about this in writing. Hopefully letting your Solicitor know that you would like to hear from them a little more often and that it would help you if they could set out some guidance as to what to expect and when in terms of reaching a conclusion on the claim will resolve the issue. However, if they continue to frustrate you and do not improve their communication, you could consider complaining to them.

Reply

Well i have waited three years for a claim to be settled where a car undertook me and it has ended up going to court so i now have a final settlement i have accepted of 60000 how long should i expect to wait for payment now ?

Ian Morris

When settlement is agreed, the balance is usually with the claimant in a reasonably speedy time – on average within 2-3 weeks, but you should not have to wait any longer than 6 weeks.

Reply

Can solicitors deduct 25% of interim payments as well as the final settlement amounts at the end ?

Ian Morris

Depending on what agreement you have signed when instructing your Solicitor, they can deduct that amount from the entire claim – this could include interim awards.

Reply

Can I get an upfront payment making a claim for compensation?

Ian Morris

Providing cash incentives for claimants to instruct a firm is prohibited under the regulatory framework governing claims management or Solicitors acting in personal injury compensation claims. Any firm offering potential new claimants such an incentive is unlikely to be legally able to act and should be avoided at all costs.

Reply

hospital admitted liability 2 years ago, solicitor ignored my requests for an interim payment, now we have to start court proceedings as defendant not responding to part 36 offer. To apply to the court for an interim payment is this a separate application.

Ian Morris

In normal circumstances, one wouldn’t apply to the court for an interim payment, they would request one directly from the defendants. However, if the defendants are no longer cooperating, the courts will be asked to intervene to compel them to do so and one could ask a Judge to award an interim amount in lieu of the final settlement agreement being reached at a later date.

Andrew

I had a serious motorbike accident 18 months ago where a car pulled across the road i was travelling on causing me to crash into the side of his car. I have metalwork in my hips, pelvis, arm and hand. Amoungst numerous other issues including spinal, leg and psychological issues.
I have received around £50k in interim payments from the opposing insurance company, along with £40k+ paid out for case management and rehabilitation fees.
Despite this they still have not admitted primary liability. Given the amount paid to date would it be fairly safe to assume that they are likely to admit liability? And for what reason could they have to hold back admission whilst paying out these kind of sums of money?

Ian Morris

It is extremely rare (almost unheard of) for a defendant to make interim awards when they are not of the view that they are liable. To issue an interim payment or meet any costs without an admission of liability on their part is a massive risk for them as even if they were later found to NOT be liable, they would have great (almost impossible) difficulty in recovering those costs.

Our view is that you should not worry and that it is most likely that they are simply delaying a formal denial of liability for as long as they possibly can. Given the nature of your accident and the way that your injuries were sustained, we cannot see how any other outcome than a formal admission of liability.

Reply

Now I’ve excepted the offer for my whiplash claim can i get an interim payment?

Ian Morris

If you have accepted an offer, it is unlikely that getting an interim award would be viable or even needed. On acceptance of your offer, you should receive the settlement within a short period of time and as such, an interim payment is not needed.

Reply

Hi I was assaulted and had a cup thrown at me. I have had plastic surgery after it lacerated through my use of right arm, needing an artery restructure (none-mendable) and I have had blood clot on my lung since.

My solicitors obtained an interim payment of £1,000. The incident happened on 4th July 2019. My case has been with health professionals as I have not been the same person since. However, I am still no wiser as to the settlement amount i’ll get and my Solicitor has now asked for another interim payment. I am struggling to understand why this is taking so long. I’ve asked my Solicitor regarding the value, but i’m no wiser.

Ian Morris

Claims for criminal injury compensation are often lengthy, especially where the severity of injury is notable – as with your case. The Criminal Injury Compensation Authority (CICA) does have a considerable backlog of cases to work through and this has further slowed the process. The fact that your Solicitor has obtained interim awards should be seen as positive as this confirms that your claim will succeed.

Reply

Hello I’ve been dealing with a cica claim for 4 years the defendants are in court in October, one person has already excepted liability but the other two hasn’t where do I stand for an interim payment?
Kind regards

Ian Morris

You can ask the Claims Handler at the CICA to make an interim award to you.

Reply

Hi I have a hearing in the high courts for a interim payment can the courts order the Defendants to pay it?

Ian Morris

The court may pass judgement that will compel the defendant to make an interim award.

Reply

I have an on going case where the defendants have admitted liability but are just dragging this out over 3 years now.
I have had interim payments of £45000 over that time, but I need another one as I now have a final court date in the high court for January next year and need an interim payment to pay my rent up until that time.

I have been told my claim is worth between £200k and £350k. I have had an offer of £100k which was turned down over a year ago. Would I be able to apply to the courts for another interim payment to cover my rent?

Ian Morris

As you will appreciate, the interim payments that you have received to date will be deducted from the final agreed settlement payment that you receive. With that in mind, the amount you have already received will be something that the defendants will be aware of. As such, there is probably little scope left for much in the way of further interim awards. That said, if you can provide evidence of your rent payments and the amount you need between now and your court date, they may well be willing to agree to that amount.

Reply

How long before I can claim for an interim payment due too a loss of earnings for an accident?

Ian Morris

As soon as an admission of liability has been obtained, a claimant may seek to request an interim payment to assist with financial shortfall caused by any injuries or financial loss due to the accident that forms the basis of their claim.

Reply

I broke my ankle and had three operations over 14 months ago. I’ve had screws and plates fitted to help my recovery. The defendants have recently admitted liability. Would I now be in a position to seek an interim payment before any compensation is settled

Ian Morris

If liability has been admitted, the defendant will be compensating you, but the final value of the claim will probably not yet be known. In such circumstances, a claimant may seek an interim award to cover some financial issues – perhaps loss of income – from the defendant and your Solicitor can ask for this for you.

Reply

How can I make a 3rd party pay an interim payment to stop my family from being in poverty? We have an indisputable witness to the accident, but the insurers keep saying we are looking for more evidence. It has been a year now and they are still saying the third party are pleading not guilty! They should not be able to make you poor and we feel that they are doing this to make us accept a low offer. I have multiple fractures and will not be able to do my job anymore for which I got paid £100,000 a year. Now we’re living on £10,000.

Ian Morris

Sadly, you cannot compel an insurer to make an interim award, only the courts could do that. Your situation is complicated further by the fact that liability is not yet accepted.

Have you asked your Solicitor if they could seek to force the 3rd party to reach a decision on liability and whether they may be able to take the matter to court to put before a Judge to seek a decision on liability and a potential interim award for some of the lost income you have already incurred?

In terms of the behaviour of the 3rd party and your allegation that they may be purposely delaying matters in order to force you in to accepting a below value offer, you may well be right – but proving so is the issue.

Reply

Hi,
I had an RTA just under 3 years ago, the other person admitted liability straight away. I had a number of injuries but finally this week all of the medical reports have been submitted to the other side. How long do insurers usually take to start making offers? I thought I read somewhere that there is usually a 30 day consultation period between the 2 sides, but my solicitor that is not correct. Can you give me any indication on how long it should take from here? Thank you.

Ian Morris

Now that the medical reports have been submitted, the defendant may wish to question or query certain issues within those reports. If they do, there will obviously be a delay before the process of negotiating settlement can begin.

When the two sides have agreed on the medical reports, the defendant will usually make an offer fairly quickly (as soon as they have south advice from their legal counsel) and it is then a case of negotiating between the two parties. It would appear that you are fairly near to the end of the process.

Reply

An interim payment has been agreed between myself and the insurance company. I have asked for the payment to be done through bank transfer. This was over a week ago. Is this amount of time normal?

Ian Morris

Unfortunately, the simple answer is yes! When an interim award is agreed (and also a final settlement) payment can take a few weeks to materialise within the claimants bank.

Reply

I had a accident at work that broke my foot and I also fractured a disc in my spine. I am still in severe pain and also possible damage to my knee replacement. I have a thumb injury due to a crush injury. I have been off work for over 12 weeks now and I am now signed of until May. I am now in a dire position financially due to this. I won’t get a medical report until the end of March. Can I claim for an interim payment? The 3rd party have admitted liability.

Ian Morris

Given the severity of your injuries and the fact that you will have a loss of income, you should be able to obtain an interim payment as the 3rd party have admitted liability. Have you got a Solicitor acting for you? If have, ask your Solicitor to request an interim award – perhaps your loss of income to date. If you don’t have a Solicitor acting for you and would like to have specialist representation, please contact us so that we can assist further.

Reply

Yes I was wearing a seat belt, but my ex partner lied to her insurance company..
They have put down 1 year for the Manchester award. I think that seems to be on the low side as the accident and blood clotting have had a major effect on everyday life now, and stops me riding horses the only job I have ever had.

Ian Morris

Have you informed the insurers that there has been a fraudulent statement made by your ex-partner?

Reply

I have a compensation claim that is going on at the moment after having a fall over a raised manhole cover in June last year. But I have just received an intrim payment of £1000 which I haven’t asked for. What does this mean and what will my likely payout be?

Ian Morris

It is odd that you have received an interim award without requesting one? Have you asked your Solicitor why they appear to have requested one without your consent? The fact that you have received an interim award indicates that liability has been admitted and that you will succeed with your claim, but the fact that £1000 has been awarded already gives no indication of the final settlement value.

Reply

Hi, I was knocked off my motorcycle in may. I was airlifted to hospital and suffered a fractured sternum, fractured rib and de gloving of the lower left leg
Numerous stitches and bruising,
I was in hospital for 10 days after needing a skin graft.
I had to have a second skin graft in august and spent another 4 weeks in a leg cast on crutches
I haven’t worked since may. And although fully healed. I will need a lot of physiotherapy before returning to work
I have received an interim payment of quite a substantial amount.
Is there any rule of thumb that dictates what percentage the interim payment should be, with regard to the final settlement?
I have been on full pay since the accident, but about to go onto the company insurance scheme when I will only get 1/2 pay .

Ian Morris

There is no set percentage of total or amount for an interim award that can then indicate the final settlement value. You were clearly seriously injured and the impact of those injuries will be accounted for in your claim and final settlement. Have you discuss the final value estimate with your Solicitor at this stage? Of course, the value will be dependant on your recovery and the longer term consequences of your injuries.

Robert

Thanks Ian for your quick reply.
I did ask the solicitor if he had any indication of the value of my claim, but he said it was too early to estimate.
My next step is to start my physiotherapy, and I will need to see a ‘medico-legal expert’
Kind regards
RS

Ian Morris

I did feel that it would be too early to be able to evaluate the final settlement value of your claim. The medical expert will be instructed to assess you, discuss the incident, your injuries and the medical treatments provided to date (reviewing your medical records). They will then provide a detailed report with a prognosis for your expected recovery, detailing any further medical interventions needed to your Solicitor. Once the contents of that report are agreed, your Solicitor will pass the same to a Barrister to seek detailed advice about claim value and proceeding to negotiate final settlement.

Good luck with your ongoing treatment and recovery.

Reply

Hi so I was hit by a bus in January I was in the passenger side car was stationary parked up ….. I’ve asked my solicitor for an interim payment which was approved nearly 8 weeks ago and I’m still waiting for it …. is there a set time once interim has been accepted?

Ian Morris

There is no prescribed timeframe for an insurer to release an interim award. Whilst it usually happens within 3-6 weeks, it can take longer.

Reply
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