When you sustain personal injury as a result of an accident, you are faced with an important choice: do you opt for a pragmatic settlement of personal injury or for a personal injury settlement agreement?
This choice has major consequences for your compensation, now and in the future. In this blog we clearly explain the difference between a pragmatic settlement and a settlement agreement, what risks are involved and what may be wise in your situation.
What steps should you take after an accident with personal injury?
A good claim settlement starts immediately after the accident. By acting carefully from the start, you will avoid evidence problems and increase the chance of full reimbursement.
Consult a doctor as soon as possible
Have your complaints recorded immediately by your GP or specialist. This medical file is essential for both a pragmatic settlement and a settlement agreement in the event of personal injury.
Collect evidence of the accident
Complete a claim form, take photos of the accident location and your injuries, and record details of witnesses. This evidence forms the basis of your personal injury claim.
Record all damage items
Save receipts, invoices and declarations. Consider medical costs, lost income, travel expenses and extra help at home. This information is indispensable when assessing your damage.
What is a pragmatic settlement of personal injury?
A pragmatic settlement of personal injury is a quick arrangement in which the insurer offers an amount early in the process to close the case. This often happens without all damage having been fully identified.
Features of a pragmatic settlement
Fast payment of a claim amount
No complete damage calculation
Often a one-off lump sum payment
Usually in favor of the insurer
With a pragmatic settlement regularly settled while complaints still exist. The future consequences of the injury are then still uncertain, which can lead to too low compensation.
What are the risks of a pragmatic settlement?
The biggest risk of a pragmatic settlement is that not all damage will be compensated. Permanent complaints, future medical costs or loss of income sometimes remain out of the picture.
In some cases, a medical reservation is used, but this does not always offer complete protection.
What is a settlement agreement in the event of personal injury?
A settlement agreement in the event of personal injury is a formal agreement in which all agreements regarding compensation are carefully recorded. This method offers more security and protection.
Features of a settlement agreement
Complete damage calculation
Attention to future damage and compensation
Possibility of medical reservation
Clear agreements and legal certainty
A settlement agreement is usually only concluded when the medical situation is stable or when it is clear what the lasting consequences are.
Pragmatic settlement versus settlement agreement
1. Thoroughness of the damage assessment
With a pragmatic settlement, the damage is assessed globally. With a settlement agreement, all damage is extensively investigated, including future consequences.
2. Speed
A pragmatic settlement is faster. A settlement agreement takes more time, but prevents damage items from being missed.
3. Certainty for the future
With a settlement agreement, especially with medical reservations, you are better protected against later complications.
4. Final discharge
Both forms can lead to final discharge, but with a settlement agreement this only happens after full and careful consideration.
What if you and the insurer do not agree?
If negotiations get stuck, a judge can be called in. Sometimes a partial dispute procedure is sufficient to have one specific dispute point assessed, so that the rest of the claim settlement can still be completed.
Why is a medical reservation so important?
A medical reservation in a settlement agreement for personal injury offers protection if your health deteriorates in the future. Without this reservation, you run the risk that subsequent damage will remain entirely at your own expense.
Conclusion: What is the best choice in the event of personal injury?
Whether a pragmatic settlement or a settlement agreement in the event of personal injury is the best choice for you depends on your medical situation and the certainty about future damage.
Has your injury been fully recovered and are there no risks? Then a settlement agreement without reservations may be appropriate. Is there uncertainty about recovery or permanent complaints? Then it is often wiser to wait for medical clarity and opt for a settlement agreement with medical reservations.
Expert advice in the event of personal injury
Are you unsure about a pragmatic settlement or a settlement agreement in the event of personal injury? Then expert legal advice is essential.
We are happy to help you make the right choice and ensure that you get what you are entitled to.