An interim payment is receipt and part payment of the damages from a personal injury claim prior to settlement.
It can be utilised while the claim is ongoing and will be deducted from the total amount of damages you are awarded at the end of your claim. You will not receive less money overall, just that it will be split into a number of payments rather than one payment at the end of your claim.
When can interim payments be made?
Interim payments can be made at any point during a personal injury claim. They can be made numerous times throughout a claim, and may well be dependent on how long a claim lasts or if there is a specific need for which they are requested and paid.
How much is an interim payment?
There is no specific amount for an interim payment, it will vary based on the individual circumstances of your case however you can request a reasonable proportion of your damages. Usually this will not include any future losses, or if it does, this will be based on future losses which will be effectively “spent” or in the past, at the time of trial or settlement. This is to ensure that should your matter go to trial, that the Judge has the freedom to decide how to award any future losses, whether this is via a lump sum or periodical payments.
How do I get an interim payment?
You will usually have a discussion with your lawyer about interim payments at an early stage in your claim, particularly where you require funds either to pay for rehabilitation on a private basis or where you are suffering hardship and require funds to pay for pre-existing financial commitments you had prior to be being injured, such as your mortgage or bills generally.
Interim payments are your damages in part, paid early, and so you can use this for whatever you need depending on your circumstances. However, if an interim payment has been negotiated to pay for something specific, it would usually be spent on this item. Each case and personal circumstances of the injured party will be slightly different and so any restrictions placed on the payments will be different.
Particularly in the early stages of your case, an interim payment is likely to be requested from the third party’s insurers or solicitors and if they agree, this would usually be paid within 14 days. This agreement is made on a voluntary basis. The third party does not have to agree to make an interim payment, although most of the larger insurance companies will do so, depending on the merits of your claim.
What if the “other side” refuse an interim payment?
If a third party refuses to pay you an interim payment when needed, it may be necessary to issue court proceedings and make an application to Court for an interim payment. This means that your lawyer would apply to the Court and ask a Judge to decide if an interim payment should be made and if so, make an Order that the Defendant should make a payment; confirm the amount, and the date by which payment should be made. It may be that funds are required for something in particular which is explained to the court for this purpose, and therefore that interim payment should be spent on that particular purpose.
Why do I need an interim payment?
There are many reasons an interim payment may be needed, such as to supplement a salary due to lost earnings as a result of your brain injury, or to pay for treatment or equipment, or cover the costs of purchasing and/or adapting a home, through to paying for general living expenses. Every Claimant is different and their circumstances unique. Your lawyer will be able to explain to you, in your particular circumstances, whether an interim payment can be made and assist in advising you about how this could be spent.
Produced by Rachael Aram, Partner at Irwin Mitchell Solicitors
Rachael Aram is a Partner at Brain Injury Group member firm Irwin Mitchell, specialising in adult brain injury and spinal cord injury cases.
How can Brain Injury Group help?
Brain Injury Group is a network of approved personal injury solicitors with brain injury expertise. Moreover, our member firms have the complex injury experience to get the best possible rehabilitation and compensation for brain injuries.
Brain injury rehabilitation is important; to us, to our members, to you and towards getting the best outcome. We can help get you that best outcome. Get in touch to find out more from our brain injury experts.
