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Your Online Guide » Legal Guide » Injury Compensation Claim

[S344]Settlements For Personal Injury
by Carla C. Ballatan, Car

Thousands of claims are filed everyday in order to pursue legal rights and collect damages due to all sorts of accidents. People, instead of negotiating problems, turn to litigation in order to solve their problems. We are at a point in time where we believe that it is better to have somebody to judge or resolve our problems for us instead of dealing with the problems ourselves.

People get in to all kinds of accidents every single minute of the day from:

1. Car accidents;

2. Bus accidents;

3. Motorcycle accidents;

4. Pedestrian accidents;

5. Slip and fall accidents;

6. Product liability;

7. Construction accidents;

8. Medical malpractice; and

9. Other results of negligence.

The above accidents happens everyday and you can see how pursuing almost all accidents in courts can be a problem.

First, the courts are swamped with these tort cases making the wheels of justice turn slower.

Second, it takes a lot of effort in filing claims and pursuing them in court. It doesn't matter if it is a simple slip and fall accident claim, car accident claim or aviation accident claim. The fact is that it takes a lot of time and effort to gather evidences, plan for a course of action and litigate those cases in courts.

Third, filing a case in court can be costly. Even if you are able to get a lawyer who works on a contingency agreement to assist you in your claim case, think of the consequent and incident costs in pursuing your personal injury claims in court. You need to go to your lawyer's office often to address pre litigation or post litigation matters. You need to travel to court also several times during the life of the trial. You may need to contact and meet with the witnesses and insurance personnel for the same reasons. Bottom line, there are hidden costs in litigation even in contingency cases.

Due to the above problems faced by an individual who decides to file a case in court, extra-judicial means of dealing with problems are becoming more popular. Extra-judicial process means alternative modes of resolving disputes like arbitration and mediation.

In a nut shell, it just mean that it is often times faster and less costly to talk about your problems out of court and find a reasonable settlement where both you and the defendant will be comfortable with the outcome.

Next time you get in an accident, try to talk it out with the other party first. You might be surprised that the other party might be willing to shoulder everything and be sorry about the troubles he or she has caused you.


A structured settlement is an agreement by which a party that loses a personal injury lawsuit (the actual payor is usually an insurance company) agrees to pay the judgment to the winner using payments over a period of time rather than payment in lump sum. This future income stream can if desired sold to a third party in exchange for a lump sum payment. The typical procedure is as follows (details may vary according to state law):

(1) The seller sends documentation including information about the insurance company, the amount of the settlement, and the payment plan to the potential buyer.

(2) The potential buyer makes a purchase offer.

(3) The seller (if interested) sends the potential buyer a copy of his structured settlement policy and the settlements agreement.

(4) The seller and the buyer draw up an agreement detailing the proposed transaction.

(5) The seller and the buyer submit the agreement along with an application to the court for approval.

(6) The court reviews the documentation and approves the sale as long as it determines that the transaction is in the best interests of the seller.

The entire process normally takes a few weeks.

An important point to keep in mind is that the price of a structured settlement is always less than the total value of the payments received. Time is money, and a lump sum payment is always worth more than payments over time because a dollar today is almost always worth more than a dollar tomorrow. Therefore it is important to accurately calculate what is called the “time value of money” in order to arrive at a fair price. This calculation is more mathematically precise than most people realize, and guidelines exist for this purpose. Unless you are a mathematician or an insurance actuary, it would be a good idea to seek professional assistance for this purpose.

Article Source : Pg. 3

About Author
Both Carla C. Ballatan & Fred Jones are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Carla C. Ballatan has sinced written about articles on various topics from Legal Matters, Accident Lawyers and Legal Matters. . Carla C. Ballatan's top article generates over 4400 views. to your Favourites.

Fred Jones has sinced written about articles on various topics from Dating and Romance, Health and Travel and Leisure. The website offers information about all types of. Fred Jones's top article generates over 49500 views. to your Favourites.
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