What are interim compensation payments?

An interim payment in a personal injury claim is a partial payment made to the claimant before the final settlement of their case.

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interim compensation payments

Can I get an interim compensation payment?

Anyone who suffered an injury and related losses due to someone else’s negligence is entitled to make a compensation claim. However, settling a claim can sometimes take months or even years. If you cannot work during this period or have medical bills and other expenses you must pay, you could find yourself under financial strain.

To help in these situations, you can potentially apply to the court to request interim compensation payments. These are partial payments of compensation made before a claim has been finalised. To be awarded a partial settlement, however, you must be able to prove that the defendant is likely to be found liable for your injuries.

To learn more about what an interim payment in personal injury claims is, call 0800 470 0474 today for a free consultation with a legal adviser. Alternatively, you can request a call back using our online claim form.

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    What are interim payments in personal injury claims?

    When making a claim following an accident, medical negligence, criminal assault or another incident, there may be a considerable gap between when you start your claim and when you get your compensation award. In such circumstances, you might find it challenging to deal with the costs of daily living and any specialist care you may need, especially if you are left unable to work.

    In this case, you can request interim compensation to cover your financial needs. Interim payments in personal injury claims are partial payments made to the claimant before the final settlement of their case.

    If the defendant has admitted liability or there is reasonable proof against them, you can request an early payment from them. Depending on the case, you can ask for the payment directly from them or through the court.

    Below, you can read more about what interim payment is, how you can request one and how it will affect your final personal injury compensation.

    How do I get an interim payment?

    If you have started a compensation claim and want to ask for an interim payment, you must first consult with your solicitor. They will calculate all the costs you have incurred so far and the likely expenses you will incur before your case settles to determine whether an interim payment is suitable for you.

    If you meet the necessary criteria, they will make a written request to the defendant or their insurer. That should contain details such as:

    • The amount of money you are looking to receive.
    • The specific financial needs for which you are requesting the payment.
    • The expected final compensation payment.
    • The reasons you believe you meet the requirements to claim interim compensation.
    • Any other relevant information.

    If the defendant agrees to pay you, you should receive the money within three to six weeks. It can sometimes take longer, but 3-6 weeks is the usual timeframe.

    If they refuse to provide an interim payment, whether they have admitted liability or not, you can make a request through the court. You can read more about seeking interim payments through the court in the section below.

    Will the court make an order for an interim payment?

    If you are in the process of a personal injury claim and the other side refuses to pay you an interim payment, you can potentially get the court system involved.

    If the court approves your request, the defendant will be legally obliged to pay you interim compensation. The conditions to be satisfied for the court to rule in your favour are:

    • The other side has admitted responsibility for your injuries and that they are liable for compensation.
    • There is a reasonable chance that the defendant will be found liable if the case goes to court.
    • You have obtained a judgment against the other party for damage to be assessed.
    • If there are two or more defendants, the court is satisfied you would obtain a judgment for a substantial compensation award against at least one of them.

    Furthermore, you must be able to prove that you have a good reason for requesting interim compensation. That could involve the need to pay for medical bills, adaptations to your house or the cost of hiring a caregiver. The amount you are requesting must also be for a reasonable proportion of the expected final compensation settlement.

    Interim payment examples

    Interim compensation may be awarded in personal injury cases to help claimants cover any expenses resulting from their accident or illness. Interim payment examples include but are not limited to needs such as:

    • Lost income from taking time off work during the recovery period
    • The cost of ongoing private medical treatments, such as surgeries, medication or hospital stay
    • The cost of physical therapy, rehabilitation and specialised care needed due to the injuries
    • In-home care or nursing if you have suffered a severe disability
    • The cost of medical equipment such as prostheses or wheelchairs
    • Travel expenses to and from medical appointments
    • The cost of making changes to your home or vehicle to cope with a disability
    • The cost of daily living if you have lost the ability to earn money
    • Any other immediate financial needs that may have resulted from your condition

    For what types of claims could you request interim compensation?

    Typically, interim payments are reserved for serious injury claims, such as spinal cord injuries or brain injuries. That is because such cases usually take over a year to settle, during which the claimant may need financial help to aid their recovery and make up for lost wages.

    Other types of cases that are the most likely to lead to an application for an interim payment include:

    • Severe road traffic accident claims. After a severe road accident, you might face significant bills for surgeries, rehabilitation and ongoing care.
    • Amputation claims. Losing a limb can lead to significant lifestyle changes, requiring prosthetics, rehabilitation, and adaptations to your home or vehicle.
    • Mesothelioma claims. Mesothelioma is a severe and often terminal illness, and those diagnosed with the condition usually need extensive medical care.
    • Sepsis claims. Sepsis can lead to severe complications, such as organ failure or the need for amputations. Interim payments can help cover these urgent medical costs and ensure you can access the care you need.
    • Claims for severe workplace accidents. A serious injury at work, such as a fall from a height or a machinery-related injury, could leave you unable to work for an extended period, leading to substantial financial losses.
    • Industrial disease claims. Claims for industrial diseases typically take a long time to settle, during which interim payments can help you cover any expenses related to medical costs and lost wages.
    • Cancer claims. Proving liability in a medical misdiagnosis case is often challenging, meaning your claim could take years to resolve.
    • Severe birth injuries. If a child suffers a severe brain injury or another trauma due to negligence, the family may face the immediate need for specialised care, therapy, and adaptive equipment.

    If you have immediate financial needs, you could potentially get interim payments for any claim that may take months or years to settle.

    Will an interim payment affect my entitlement to benefits?

    If you currently receive means-tested state benefits such as Universal Credit, Housing Benefit or Jobseeker’s Allowance (JSA), an interim payment may impact your household income and the payment of your benefits.

    As a general rule, anyone with less than £16,000 in savings is potentially entitled to some form of benefits. However, having between £6,000 and £16,000 in your bank account can affect the amount of benefits you are entitled to.

    Therefore, it is essential that you discuss this with your solicitor before making any requests for interim compensation. They should be able to help you keep your benefits even if your interim payment is over £6,000 by setting up a personal injury trust in your name.

    A personal injury trust is a legal arrangement that allows you to hold and manage your compensation in a separate bank account, so it will not be considered when assessing your entitlement to means-tested benefits.

    Are interim payments taxable?

    All personal injury compensation, including interim payments, is awarded to help you cover the losses resulting from an accident or negligence. Compensation aims to put you back in a similar position you would have been in had the incident not occurred.

    It also aims to provide support for long-term needs resulting from your injuries and compensate you for the pain and suffering you experience through no fault of your own.

    For these considerations, the compensation you are awarded is tax-free, no matter how substantial and whether you get it as a lump sum or through periodic payments. As interim payments are an advance of the final compensation award, you will not pay tax on them, no matter how big they are or how many you request.

    How will interim payments affect my final compensation award?

    Interim payments are advance payments made during a personal injury claim. They intend to cover immediate financial needs before the final settlement is reached and are deducted from the final compensation award. For this reason, they will impact the amount you receive at the conclusion of your claim. However, they will not affect the total compensation you are entitled to.

    For example, if your final compensation is assessed at £200,000 and you have already received £40,000 in interim payments, the remaining £160,000 will be paid as the final settlement. As a matter of fact, many claimants prefer to receive spread compensation payments rather than a lump-sum award at the end of their claim. This way, you do not have to wait to access the funds that you need now to support your recovery and the costs of daily living.

    Is there a time limit to claim interim payments?

    There is no time limit to request an interim payment once you have started a personal injury claim. However, if you want to make a compensation claim, it is essential to start legal proceedings within the time limit allotted by the Limitation Act 1980. This is three years from the date of the accident, with a few exceptions:

    • You can make a child injury claim at any point until their 18th birthday, after which they will have three years to start a claim themselves.
    • Claims through the CICA have a two-year time limit starting from when a criminal act occurred or was reported to the police.
    • The time limit is suspended if the claimant cannot handle legal proceedings due to a severe injury or existing condition that limits their mental capacity.

    What amount of compensation could be awarded as an interim payment?

    Claims for an interim payment must typically be made for a reasonable proportion of the final settlement that you can likely expect. Your solicitor will calculate your compensation award based on two types of damages:

    • General damages are awarded for pain, suffering and loss of amenities. These are based on the guidelines from the Judicial College and can be as high as £493,000 for a severe brain injury.
    • Special damages refer to the related financial losses and expenses, both past and expected in the future. These include lost wages, medical bills, care costs and home adaptations.

    Based on the calculated damages, your solicitor can advise you on the amount you could ask for as an interim payment. For example, it would be reasonable to ask for £30,000 if you suffered severe trauma to the spine that has left you paralysed, but less likely if you suffered a leg fracture.

    How many interim payments can I receive?

    There isn’t a fixed number of interim payments you could request from the defendant. However, the total amount you ask for cannot be more than a reasonable percentage of the expected final settlement.

    Each request must be justified, and you must demonstrate a clear need for the payment. If the defendant refuses to pay them, the court will assess each request and decide whether it is reasonable and necessary.

    For example, you might request one payment for immediate medical treatment and another later for ongoing rehabilitation costs. It is essential to work with your solicitor to assess your needs and request payments as necessary to ensure you have financial support throughout the claims process.

    Discuss your claim with an experienced personal injury solicitor.

    If you have suffered an injury due to someone else’s negligence and want to learn more about interim payments in personal injury claims, feel free to contact us for legal advice. A friendly solicitor will help you understand how the law works and answer all your questions.

    If you have a valid claim and you decide to go ahead, your solicitor will:

    • Offer you a no win no fee claim agreement, so there is no financial risk to you if your case fails;
    • Help you gather all the necessary evidence to support your claim and secure the maximum compensation award available to you;
    • Handle all communications and negotiations with the defendant;
    • Keep you updated on the progression of the case and review any settlement offers with you;
    • Help you claim as many interim payments as you need throughout the claims process.

    If you still have questions about ‘What is an interim payment?’ or if you want to start a compensation claim, contact us today for a free consultation with a legal adviser. You can call 0800 470 0474 or enter your details into our online claim form to request a call back.