The value of interim payments in personal injury and medical negligence claims

Compensation claims for serious injuries can take years to settle. Often, claimants who have been injured will need financial assistance before then. Interim payments can be that lifeline an injured person needs whilst waiting for their claim to conclude. 

At Anthony Gold we represent people who have suffered life changing injuries. We understand that injuries not only have an impact on physical and mental wellbeing, but they can also cause significant financial difficulties. We aim, as far as possible, to get our clients’ lives back on track as soon as possible by arranging early rehabilitation and securing early interim payments to assist with any financial difficulties. 

What is an interim payment?

An “interim payment” is a payment made by the defendant to a claimant prior to the conclusion of their claim. They are advance payments of damages that some out of the final compensation award – not in addition to it. 

Interim payments can be made voluntarily, but if a defendant is unwilling to make an interim payment the court has the power in certain circumstances to compel a defendant to make an interim payment.  

Interim payments are intended to help claimants by providing financial relief so that they can start to get their life back on track after their injury without waiting for the case to come to a final resolution. Receiving an interim payment can also allow a claimant to pursue a claim fully and ultimately obtain the proper compensation they are entitled to, rather than feel pressured, due to financial constraints, to accept an early and low settlement. 

How can interim payments be used?

Interim payments can be used by the claimant for whatever is needed at the time. Every claim is different, and the needs of a claimant will depend on their individual circumstances. We will often represent clients who are self-employed and when they cannot work, they do not get paid as they have no sickness benefits that a PAYE employee would have under a contract of employment. In such cases, if that client is the only breadwinner in the family for example, this will lead to an urgent need for funds to cover income lost whilst unable to work.  

Although there is no obligation to explain how the money will be spent, it is more likely that an interim payment request will be successful if an explanation is provided. If interim payments are used to cover costs that have only been incurred or need to be incurred as a direct consequence of the accident, then there will be a strong chance of recovering those costs as part of the claim for financial losses (known as special damages).

Examples of common uses for interim payments include:-

Private medical treatment/therapy.

Although this may be available on the NHS, it is often quicker to be treated privately. Alternatively, supplementary private treatment may be needed if NHS treatment is limited or likely to involve long delays. Insurers will often be happy to discuss paying for private treatment if it means that the individual will recover faster. This is because the faster a claimant recovers from their injuries, the less the insurers have to pay them. The longer a recovery takes, the more extended the period of pain, suffering and loss of amenity and the higher the value of the claim.  

Rehabilitation support and equipment.

A seriously injured person may need extensive rehabilitation or special equipment to assist their recovery. The ethos here is exactly the same as per the above, in that the more access to rehabilitation, including necessary aids and equipment, a claimant has, the better chance they will have of making a better and quicker recovery. 

Care costs.

If an injured person requires assistance with daily tasks and does not have family or friends to assist them on a day-to-day basis, they may need to hire a carer. These costs can be expensive but care and assistance after an accident, particularly in the most acute phase of the recovery period, is crucial and an interim payment can ensure that this can be arranged for the claimant.

Home adaptations.

If changes to the home are needed (e.g. installing ramps or handrails) to make life easier, an interim payment could enable the work to begin sooner. 

Supplement lost earnings.

If the injured person is no longer able to work, an interim payment could help with bills, mortgage repayments and daily living expenses.

These are all examples of expenses which have been or need to be incurred as a direct consequence of an accident and should therefore all be recoverable as part of the claim. Interim payments allow a seriously injured claimant to continue with their recovery in the vital early stages following their accident and beyond, whilst also ensuring that they do not encounter financial hardship whilst unable to earn an income from their work.  

Whether you have sustained a brain injury and require urgent intensive neurorehabilitation, or have lost a loved one to a fatal injury and are struggling financially as a result, our team of experienced solicitors will be able to review your individual claim and advise you as to whether an interim payment can be made and how this could be spent.