What are Periodical Payments?
In some cases a decision has to be made as to whether the damages should be paid as one lump sum or whether some or all of it should be paid in instalments (periodical payments).
Usually periodical payments are considered where the injured person is likely to have substantial ongoing expenses arising from their injuries, for example the cost of continuing care.
The advantages of periodical payments are that they are guaranteed for the Claimant's lifetime so that portion of the damages will never run out and they can be indexed linked.
What are Provisional Damages?
Once an injury claim has been settled this is usually a final settlement meaning that you are not entitled to reopen your case at a later stage and ask for more compensation. In some cases however this is not appropriate.
Provisional damages are used where there is a risk that your medical condition will deteriorate significantly in the future. An Order for Provisional damages means that you can apply for further compensation at a later stage in the event that condition was to develop. One of the most common examples is that someone who has sustained a serious head injury may have an increased risk of developing epilepsy. An appropriate award of provisional damages should entitle that Claimant to seek further damages if he is unfortunate to develop epilepsy in the future.
Can I get an interim payment?
Sometimes! Please raise this with us.
Where the Defendant will not voluntarily agree to make an interim payment then it may be possible to apply to the Court for one. There are various conditions that will need to be met before a successful application for an interim payment can be made.
What are Part 36 Payments / Offers?
This is an attempt by one or other party to try and settle all or part of the claim. It is a significant step in any case. We will advise you fully about the consequences of such a step should it happen in your case.
What is the C.R.U.?
This is the Compensation Recovery Unit and is part of the Department of Work and Pensions (DWP). Every claim for compensation for injuries has to be registered with the CRU, because if your case succeeds the Defendant or insurance company will need to refund to the DWP the benefits you have received as a direct result of the accident. These benefits are normally deducted from your claim. We will send you a copy of the CRU statement when received from the DWP to let you check that you agree with their figures.To register your claim with the DWP the Defendant will need your date of birth, National Insurance number, pay roll number (if you have one) and name and address of your employer (if you are working).
E.g. John works part-time at a local supermarket and earns £100 net per week. He is off work for 10 weeks and received £50 benefits per week.
His loss of earnings claim is 10 weeks x £100 = £1,000. The DWP issue a Certificate of Benefits showing 10 weeks x £50 = £500.
The Defendant insurer pays the DWP £500 and John receives the balance of £500.
Will the damages I receive affect my benefits?
Possibly. This depends on the amount of compensation you receive and whether your benefits are "means tested" or not.
It may be to your advantage to set up a special form of trust to protect your entitlement to your benefits. We have a specialist Trust Department who can give appropriate advice on this and other matters to protect your estate. Please raise this with us.
Can you advise me what to do with my damages?
Yes, we have arrangements with independent financial advisers who can assist. If you want to buy a property we have an experienced Conveyancing Department who will be pleased to assist. You should also consider making or reviewing your will.