What is an interim compensation payment

What is an interim compensation payment?

If you have suffered a personal injury from an accident, it is likely that you will hear the term ‘interim compensation payment’. As the name suggests, an interim compensation payment can be awarded to you on account of the future compensation payment that you are likely to receive.
The benefits of such a payment are quite clear, particularly if you have suffered a personal injury that has rendered you unable to work. If you have suffered a personal injury, you could find that your earnings are severely reduced or even stopped, which means you aren’t earning an income for the period that you are out of work. You could also have to lay out a substantial sum of money for repairs of a vehicle for example, or to fix something else which could amount to serious financial pressure on yourself and your family.
An interim payment does not mean that you have ‘settled’ your claim, but rather are accepting a part payment (on account) so that you have money in which to live off until you can return to work and until your claim has been settled in full.
In theory, an interim compensation payment sounds quite straightforward, however not everyone will be eligible because it is determined by a number of different factors. Here are some important points to remember if you are in a position where you need an interim payment:
· You can only be considered for such a payment once court proceedings have commenced
· You have received a judgement in terms of liability or the defendant has admitted liability
· The court would obtain the view that if the case when to trial, you would be likely to receive a substantial compensation payment
· You can show that the compensation that you are likely to be awarded, exceeds an interim compensation payment
Another important point to remember is that the court can order a proportion of compensation to be paid, provided it is reasonable and will also take into account factors that constitute contributory negligence.
Don’t be pressurised
All too often insurance companies will try to stretch a case out so that it effectively pressurises you to accept a low offer or a quick settlement. Taking an interim payment does not mean that you need to accept a low offer or be pressurised into settling a claim quickly but is designed to keep you going until the claim is settled and you receive the remainder of any compensation which is due.
You are more likely to be eligible for an interim compensation payment if your case has a high success of being awarded a significant compensation payment.
For more advice about interim compensation payments, You can contact us and speak to one of our experienced injury lawyers in birmingham, Wolverhampton and Peterborough. If you require assistance in understanding the process of personal injury claims you can also give us a call on 0121 525 2555/ 3100.