How Are Personal Injury Settlements Paid Out? What You Need to Know

When you are hurt because of someone else’s fault or negligence, you can claim compensation for your pain, suffering, lost income, medical expenses, and more. It can be extremely challenging to cope with serious injuries while trying to navigate the insurance claims process and determine what your claim is worth. Medical bills are piling up, you’re missing work, and you have no idea when or how compensation will be paid to you. 

Today’s blog post is for anyone wondering how personal injury compensation is paid. Before diving in, please know that you don’t have to go through this alone. You can reach out to our Oshawa and Lindsay accident claims lawyers for advice and guidance. 

What Compensation Are You Entitled to After an Accident?

Regardless of how you were injured—such as a slip and fall, car accident, dog bite, or defective product—you’re entitled to claim compensation from the at-fault party. You file a claim against the person or people responsible for your injuries (e.g., the defendant may be the property owner, the other driver, the owner of the dog, or the manufacturer of the product that harmed you) to recover damages. 

There are two main types of damages in a personal injury claim: 

1. General damages (also known as non-pecuniary damages), which are intended to compensate you for intangible losses including loss of enjoyment of life and pain and suffering.

2. Special damages (also known as pecuniary damages), which provide compensation for your out-of-pocket medical and treatment expenses and economic losses such as income loss while recovering from accident injuries and loss of future earning capacity.
   

There may be other types of damages and sources of compensation, depending on how you were injured. For example, if you were injured in a car accident, you can file an Accident Benefits claim. Accident Benefits include medical and rehabilitation benefits and income replacement benefits through your own auto insurance policy, regardless of fault for the accident. 

Your best bet is to contact one of our Oshawa and Lindsay accident claims lawyers as soon as possible to ensure you don’t miss claim deadlines or lose out on compensation you would have otherwise been entitled to receive. 

What Happens After You File a Personal Injury Claim?

After your claim has been filed, it will be thoroughly investigated to determine fault and the extent of your injuries and losses. Medical records, treatment records, documents to prove loss of income, and expert reports will be gathered to support your claim. 

Your claim will generally then proceed through a “discovery,” where the defendant’s lawyer asks questions regarding your injuries and how the accident occurred. Following discoveries, parties will usually attempt resolution informally. If the informal process is unsuccessful, a “mediation” often follows. Parties meet formally and enlist the services of an independent party known as a mediator to assist in the resolution process.

If mediation proves unsuccessful, the matter proceeds to a pre-trial. Here, both sides have the assistance of a judge who offers his or her views. The judge’s view is not binding but will often assist in resolution. If resolution is still not possible at that point, the claim will proceed to trial. A judge or a judge and jury will decide whether your claim has been proven, and if so, they’ll determine the amount of your personal injury award. 

The length of time it takes to receive a personal injury award following trial depends on many factors, such as the severity of injuries, the willingness of parties’ to negotiate fairly, and the court schedule. The process typically takes several years. 

What Are Out-of-Court Personal Injury Settlements?

Only if all of the above fails—which is rare—does a personal injury claim proceed to trial. Most personal injury cases settle outside of a courtroom, at some point during the process outlined above. When a claim settles without the need for a trial, the agreement reached is known as a personal injury settlement. 

Out-of-court personal injury settlements are negotiated using the same legal principles as a personal injury award, and cover the same types of damages (see here for a detailed article from our Lindsay accident claims lawyers about how to estimate what your claim is worth). The main advantage is that settlements are often achieved much faster, which means you receive compensation much sooner than after trial. 

How Will You Be Paid?

Whether your claim is settled out-of-court or at trial, there are several payment options to consider: 

• Lump-sum payment: this is a one-time payment in full (most personal injury claims are paid out as a lump sum).

• Structured: regular payments are paid out to you (e.g., monthly, quarterly) for a set period of time.

• Trust: a personal injury trust can be established with the trustee(s) managing and paying out from the trust as needed. 
  

It’s strongly recommended that you get legal advice to determine which payment option is best in your situation. 

Trusted Advice from Lindsay Accident Claims Lawyers

Lindsay, Whitby, Oshawa, Kawartha Lakes, Durham Region, GTA and surrounding area residents are encouraged to contact Kelly Greenway Bruce following an accident or incident that caused personal injury. Our accident claims lawyers can help you explore your legal options, protect your legal rights, and fight tirelessly on your behalf to ensure you get the compensation you deserve.

Kelly Greenway Bruce is a full-service law firm with extensive experience in personal injury matters with offices in Oshawa, Lindsay, Kawartha Lakes, Durham Region, GTA and surrounding areas.

To find out if you have a case, contact us today at our Oshawa or Lindsay locations.