Small personal injury claims in Los Angeles can take about six months to reach a conclusion. When it comes to serious injuries, the time needed for resolution is likely to be two years or more. The cost of litigation for the insurance company is much higher than for the plaintiff (the victim filing the claim).
In most personal injury cases, the insurance adjuster makes an initial offer and tries to settle quickly. If that effort fails, the company gets down to business. It is an art, but it requires a lot of time. If an experienced lawyer comes forward for the victim, he is sure to get a good settlement, as long as all the details provided are correct. The services of insurance company adjusters turned settlement advisers are available. They know all the ropes. Online tools and software are also available to assist the claimant.
From time to time the attorney will keep the client informed of the progress of the negotiations, as well as his recommendation when the final offer from the insurance company is received. It is up to the client to accept or reject. The details of the proposal should be studied, and doubts should be clarified with the lawyer. If a settlement is accepted, the insurance company could be ordered to pay the attorney and medical bills directly. Sometimes the attorney may accept the offer without referring to the client. This is improper and the customer may protest. Normally the insurance company issues the settlement check jointly in favor of the client and the lawyer.
There is a system known as a ‘structured settlement’, which is gaining popularity. Here the settlement money is paid over a period of time. It offers many initial options and the money is held in funds that allow it to grow. The recipient must ensure that the fund is protected. Once the structured settlement plan is accepted, it may not be possible to change the terms.
Settlement payments are tax free. But if that money is invested, the income from it could be taxed. Structured settlements offer better tax benefits. This is a matter that should be discussed with a tax advisor.
If a minor is involved in an arrangement, there could be complications. Court approval may be required.
