Can I cash my interim?

I had an accident when a car pulled out of a junction into my path. There was traffic coming the other way so there was nothing I could do to avoid the car and I was thrown over the bonnet.

My solicitor sent me an interim payment (an old fashioned cheque!) from the other side and said I should bank it. However, the cover letter says “This is a without prejudice interim payment. We reserve the right to reclaim this payment if we find evidence of dishonesty or evidence of your client’s blame in this claim”.

I have not been dishonest so can I pay the cheque in?

Lance, by email

Answer

An interim payment is a payment on account of your claim and you will need to give credit for it at the end of the claim. The total of interim payments made during a claim will be deducted by the paying party at the end to avoid a you making a double recovery.

The wording used by your opponent’s insurer is to protect them should evidence come to light that the accident was your fault or if there is a finding of fundamental dishonesty. They have reserved their position to reclaim the money from you in the event that this is the case. Based on your account it is highly unlikely that this would happen,. You can pay the cheque in.