Procedure Used To Pay Injury Victim That Has Won Compensation

After an accident victim has filed a claim, the insurance company does not automatically issue a check. It tries to avoid the need to issue that check. It may ask the victim to attend an Insurer Exam (IE).

That company will certainly negotiate with a lawyer or legal representative for the victim, in order to determine the amount of the victim’s deserved compensation. Ideally, those negotiations will aid the reaching of a settlement. Still, that does not mean that a check will get started on its way to the victim’s residence, right after a settlement has been reached.

Procedure that is apt to precede the sending of the check

Typically, the insurance company will ask the victim to sign a release form. By placing his or her signature on that form, a victim agrees not to pursue any legal action against the insurer. Once the release has been signed, the insurance company processes the check.It is impossible to estimate with any level of accuracy how long this second step could take. Different companies have different ways for getting the check signed and then approved by a person in authority. It does not get mailed until it has been approved.

Procedure followed to get check from an office in the insurance company to the victim’s mailbox.

The insurance company sends the check to the injury lawyer for the injured victim. In most cases, the injury lawyer holds the check, in order to make sure that it has cleared. Then that member of the legal profession takes that amount of money that equals his or her contingency fee. Once that money has been taken out, the Injury Lawyer in Ottawa sends the rest of the awarded funds to the waiting client.

Sometimes a victim that is awaiting compensation for losses suffered as the result of an injury has promised some of the same money to someone else. Hence, the person to whom it has been promised can seek to obtain a lien on some portion of the awarded funds. That will make it necessary for the lawyer to pursue one of two different actions.

After getting the check, the lawyer may decide to pay off the lien, using a portion of the victim’s compensation. Alternatively, the lawyer could contact the lien holder. Then the two could negotiate, with the lawyer trying to get the lien holder to accept a smaller payment. The less money paid to the lien-holder, the greater the amount of money that would be made available to the lawyer’s client (the victim).

The procedures described above came into use before anyone had heard of digital banking. Today, of course, a client might want his or her injury lawyer to make a direct deposit, using the awarded funds. Then the injury lawyer could call the client and say, “The money was deposited in your account.” instead of “Your check is in the mail.”