In personal injury cases in Scotland, interim payments can provide financial relief to the injured party before the final settlement is reached. These payments are designed to cover immediate and essential expenses resulting from the injury. This guide is designed to take you through what they are and when we can apply for them on your behalf.
Interim payments are partial payments made by the at-fault party or their insurance company before the final settlement is determined. It is usually characterised as an immediate payment for an immediate need. They are intended to address immediate financial needs such as medical care/treatment, rehabilitation costs, and other related expenses. It is a sum of money advanced to the injured person from the total pot of compensation they will get at the end of their personal injury claim. This requires the claim to be valued or at least an understanding as to the value of the claim. To value a claim often requires expert evidence in the form of medical reports and experts.
To be eligible for interim payments, the injured party must establish liability on the part of the at-fault party. It is crucial to demonstrate that the at-fault party is likely responsible for the injury.
An interim payment in a personal injury case can be used to cover a variety of immediate and essential expenses resulting from the injury. The purpose of interim payments is to provide financial support to the injured party while the final settlement is being determined. Here are some common uses for interim payments:
Medical Expenses: Interim payments can cover medical costs, surgery fees, prescription medications, and any other expenses related to the medical treatment of the injuries.
Rehabilitation Costs: If the injured party requires rehabilitation services, such as physiotherapy, occupational therapy, or counselling, interim payments can be used to cover these expenses.
Ongoing Treatment: Some injuries may require long-term or ongoing medical treatment. Interim payments can be utilised to cover the costs of follow-up appointments, specialist consultations, and any necessary medical procedures.
Loss of Earnings: If the injury results in a loss of income due to an inability to work, interim payments can help compensate for the wages or salary that the injured party would have earned during the recovery period.
Home Modifications: In cases where the injury leads to a disability or reduced mobility, interim payments can be used for necessary home modifications to make the living environment more accessible and accommodating.
Assistive Devices: Interim payments can cover the costs of purchasing or renting assistive devices such as wheelchairs, crutches, or other equipment that may be needed due to the injury.
Travel Expenses: If the injured party needs to travel for medical appointments or treatments, interim payments can be used to cover transportation costs, including fuel, public transportation, or accommodations if necessary.
In situations where the injured person requires assistance with daily activities or caregiving services, interim payments can be used to cover the costs of hiring professional caregivers or support workers.
The injured party legal representative can initiate the interim payment process by submitting a formal request to the at-fault party's insurance company. This request should include details of the injury, evidence of liability, and a breakdown of the requested interim amount.
When you make a personal injury claim, we will work with experts to determine your medical and rehabilitation needs, and any earnings that you’ve lost. We’ll help you estimate and value what your costs are going to be, both now and in the future. Expert opinion and views are crucial in this process. If we consider that interim payments are suitable, we will discuss them with you
To begin with, you can only request interim payments if the you say are at fault for your injury admit that they were responsible for your injuries. However, we can also ask the court to order an interim payment if:
If you need multiple interim payments, the court will need to agree to each one.
The interim payment amount is typically based on the immediate financial needs of the injured party alongside an assessment of the value of the claim being made. The amount you can get as an interim payment depends on your situation and the seriousness of your injuries. The same rule applies if you request multiple interim payments.
The party at fault or their insurer will receive the request, the at-fault party's insurance company may enter into negotiations with the injured party or their representative to determine a fair and reasonable interim payment amount. It is important to document all communications and agreements during this process.
If the at-fault party or their insurance company refuses to agree on an interim payment, the injured party may need to apply to the court for an order. The court will assess the circumstances and decide whether an interim payment is justified.
Engaging a personal injury solicitor is advisable when dealing with interim payments. A legal professional can help gather necessary evidence, navigate negotiations, and guide the injured party through the legal process.
It is important to note that any interim payments received will be deducted from the final compensation amount. Therefore, it's crucial to keep accurate records of all expenses and payments made during the interim period.
Interim payments amounts are decided based on your overall compensation – they must be a ‘reasonable proportion’ of the overall amount. The amount you can request considers things like:
Our solicitors will help you work out your costs and request reasonable interim payments to make sure you get the best medical care possible.
Your final compensation payment will consider any interim payments that you’ve already had. This means that your final payment will be lower, but you won’t get any less money overall. Many people prefer to get interim payments rather than one big lump sum, and many people depend on the help that interim payments can give. With interim payments, you don’t have to put off medical procedures or equipment purchases until your claim is over.
Interim payments may affect your eligibility for means-tested benefits. However, in some cases a personal injury trust may be utilised to ensure that the benefits are protected. Further information is available on our Guide to Personal Injury Trusts and claiming benefits. Not every person is entitled to a Personal Injury Trust.
If you have claimed benefits due to your injury because you’re out of work this could also impact your interim payments. Your interim payment will be reduced by the amount of benefits that you have claimed. You will require advice and guidance on your benefit position and the impact of an interim payment.
This guide is not tax advice which you will require to get from a tax advisor. However, you don’t have to pay tax on personal injury interim payments. All personal injury compensation is tax-free, whether you get it in one lump sum or in parts.
It doesn’t matter how big your interim payments are, or how many you get – you won’t pay tax on them. It's important to note that legislation and regulation do change, so it's advisable you take advice specific to your situation.
It is important to note that interim payments are meant to address immediate and essential needs arising from the injury. Keeping detailed records of how the funds are used is crucial, as these payments may be deducted from the final settlement amount. Legal advice and guidance from a personal injury solicitor can be invaluable in ensuring that interim payments are appropriately utilised and documented.
Depending on your situation, you may need a single interim payment or multiple payments over months or years as your claim continues. Serious injury and brain injury claims can often take a long time and involve a number of interim payments.
Interim payments can provide essential financial support to those who have suffered personal injuries in Scotland. Seeking legal advice and following the proper procedures will help ensure a fair and just interim payment process.
This guide is not a substitute for professional legal advice. Always consult with a qualified solicitor to discuss the specifics of your case.
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