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What are Interim Payments?

23rd June 2017

In personal injury and medical negligence claims, an interim payment is when you receive part of your compensation settlement early, before your claim has fully and finally settled. 

For free legal advice call our Personal Injury Claims Solicitors on 0330 606 9587 or contact us online and we will help you.

For some people who are pursuing a personal injury or medical negligence claim, their injuries are so severe that their ability to work is affected. This can result in either a total or partial loss of earnings. In addition, you may require rehabilitation like physiotherapy or acupuncture, which can be paid for privately by the person at fault.

If this happens to you, it will understandably make your financial situation extremely difficult. As a result you may feel pressurised into settling your injury claim early, just so you’ve got some money to sustain you and your dependants.

However, it’s important not to settle a claim too early, as you won’t get the full amount of compensation that you are entitled to. Usually once a personal injury claim settles, it is on a ‘full and final basis’, so you won’t be able to get any more compensation from your claim.

But that can leave you in a difficult position, as personal injury claims can take years to finalise, during which time your finances could be seriously depleted. To overcome this problem, it’s possible to ask for an interim payment.

How Do Interim Payments Work?

An interim payment is a payment on account of your full compensation, meaning you effectively receive part of your compensation settlement early. Then when your claim settles, you will receive the remainder of the money.

Who Can Get an Interim Payment?

If the other side in a personal injury or medical negligence claim admits fault for your accident and injuries, your Solicitor can ask for a voluntary interim payment to be made. If the other side are not prepared to make an interim payment then your Solicitor can prepare Court proceedings, once medical evidence has been obtained, and ask the Court to order an interim payment.

Your Solicitor can only make an application to the Court if proceedings have been ‘issued’, which means that your claim has been lodged with the Court and the legal process is underway. Before ordering an interim payment, the Court will want to be sure that:

  • Liability has been admitted, or that if your claim went to trial, there is a reasonable chance that the other party would be found to be at fault
  • There is good reason for you requesting an interim payment
  • The amount requested is reasonable and is likely to be less than your final compensation settlement

There is no limit to the number of interim payments you can receive, but the Court will want the above criteria to be satisfied each and every time.

For free legal advice call our Personal Injury Claims Solicitors on 0330 606 9587 or contact us online and we will call you.

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