Is it safe to cash my interim?

I was injured in a road traffic accident when a car pulled out from a junction on my left-hand side. There was oncoming traffic, so I was unable to avoid the collision and was thrown over the bonnet of the vehicle.

My solicitor has sent me an interim payment from the other side’s insurer in the form of a cheque and advised me to bank it. However, the accompanying letter states:

“This is a without prejudice interim payment. We reserve the right to recover this payment should evidence emerge of dishonesty or contributory negligence on the part of your client.”

I have been completely honest throughout the claim, so I would like to know whether it is safe for me to pay the cheque into my account.

Thomas, by email

Answer

An interim payment is an advance payment made on account of your compensation claim before the case is concluded. Any interim payments you receive will be deducted from your final settlement to ensure that you are not compensated twice for the same loss.

The wording used by the insurer is standard and is intended to protect their position if evidence later emerges showing that you were partly or wholly responsible for the accident, or if there is a finding of fundamental dishonesty. In those circumstances, they reserve the right to seek repayment of the interim payment.

Based on the information you have provided, and assuming your claim is genuine and accurately presented, it is unlikely that the insurer would seek to recover the payment. You can therefore bank the cheque.