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