When it comes to injury claim settlement, there are two routes involved: that’s settlement with an attorney after filing a claim, and settling with an adjuster without any legal claim. A settlement refers to finding a solution to your complaint without the problem going to court and being decided by a judge.
The majority of legal claims in the United States are settled out of court, which means that victims of accidents such as car and slip and fall resolve without stepping into a court of law.
A legal claim is brought to closure by a settlement, meaning that the victim will receive a lump sum payment for injuries. The insurer will close the file, with the victim knowing he or she will never seek compensation for the damage again.
What is a Settlement
Settlement occurs when a defendant or insurer makes an offer to pay the injured person. It happens while the period for acceptance hasn’t elapsed, the reason being that the defendant or insurer makes a limited-time deal.
The settlement offer is made before any lawsuit is filed.
The injured person may receive the offer after he/she files the lawsuit and the case is undergoing trial.
During the trial, the offers may be exchanged.
Once the victim or plaintiff accepts the offer, he or she must cease claiming compensation for injuries and any other potential claims that may arise from the accident. One part of the settlement process is to sign a release, personal injury compensation lawyers will do this for you. Its terms will be that you forfeit all applications and in other cases will prevent you from discussing the settlement details with other people.
By signing the full liability release, you bind yourself with this agreement. For instance, the car insurance company may offer the victim $50000 to settle the case; however, for the plaintiff to receive this amount, he/she will have to agree not to sue the company as a result of the accident.
Insurance Companies and Settlements
When insurance companies are involved in a case, settlements will in most cases be there since the policy of insurance requires them to respond to the lawsuit. For instance, the insurer will respond in the case of the at-fault driver who causes the accident, since it’s their customer who hurt the injured person.
In the event of a personal injury case, settlements are popular since there are insurance companies involved. The reason is that these companies are businesses with shareholders expecting a profit. It means that it’s not in the interest of the company to pay legal fees if they know the case will be lost. The best way is to settle the case since it will involve fewer expenses.
Personal Injury Lawsuit: Why Do Insurers Choose To Settle?
1. Settlement Enables the Insurer to Minimize Risk and Reduce Costs
The insurance business is at risk. However, if it’s the customer who was at fault and they going to lose the case, they will want to cut their losses. A court trial comes with uncertainty, which means that the best way is to settle.
2. Settlements Are Private
Remember that companies don’t like negative press coverage, which means that opting for settlement is the best decision. For instance, if it’s a food company or a drug company involved in malpractice, the resulting media coverage may end up leading to massive losses.
3. Settling Allows the Victim to Move On With Their Lives
The victim needs closure, which the settlement brings. That’s because court cases can go on for years, meaning that compensation may occur after years. Remember that the victim needs money to help pay medical bills and offset lost income, which means that the best way is to settle.
4. It Guarantees Victory for the Victim
If the victim chooses to settle, there’s no risk. The reason is that if he or she decides to go to court, the chances are that they may lose the case.
What If The Settlement Attempt Fails?
In most cases, the settling process should be tried. However, the settlement discussions may not result in an agreement, the reason being that the parties involved may not agree on the best amount to pay. Get to know more about how to go about if the settlement talks fail.
If the matter can’t be settled before going to court, then a trial is the way to go (that’s unless the victim drops the claim).