Advance payment in personal injury cases: money before the final settlement | Den Haag

What exactly an advance is

An advance is a payment towards the final compensation. It is not a separate pot and not a favour: the amount will later be set off against the final amount. If you now receive €5.000 and your damage is ultimately assessed at €40.000, then €35.000 remains.

That set-off nature has one practical consequence that often surprises people: statutory interest stops running on the part that has been paid out. See statutory interest on personal injury compensation.

When you can ask for it

The practical condition is that liability has been acknowledged, or at least is not seriously disputed. As long as the insurer maintains that its insured did nothing wrong, there is no basis for payment.

If liability has been acknowledged, there is no reason to wait with an advance until all the damage has been mapped out. The extent does not have to be established; what matters is that it is plausible that you have a claim to at least a certain amount.

How you request an advance

Do not ask in general for “an advance”, but substantiate it. A request that usually succeeds contains:

• a concrete list of costs incurred and ongoing, with receipts and invoices;
• a calculation of the lost income so far, with payslips from before and after the accident;
• an explanation of what is still to come, so that it is clear that this is not a one-off peak;
• a requested amount and a deadline. Ask for a response within a reasonable period, for example two weeks.

If the insurer does not pay or pays too little

An insurer that has acknowledged liability and still continues to refuse puts you in a position that the law did not intend. There are then three routes.

First: insist in writing, referring to the Gedragscode Behandeling Letselschade (Code of Conduct for Handling Personal Injury Claims), which assumes an efficient settlement in which the victim is central.

Second: a complaint with the insurer itself, and then if necessary with Kifid (the Financial Services Complaints Institute).

Third, and the most effective: the deelgeschilprocedure (partial dispute procedure) of artikel 1019w Rv. With this you put one defined point of dispute before the court – for example whether you are entitled to an advance – without starting a full court case. The procedure is specifically intended to simplify and speed up the out-of-court settlement. See the deelgeschilprocedure.

Watch out for these two pitfalls

Do not sign a slotkwijting (final discharge) for an advance. If you are asked to sign a statement saying that you grant “finale kwijting” (full and final discharge), then that is not an advance but a final settlement. With that you waive everything that later still comes to light.

Watch the effect on benefits and allowances. An advance can count as assets. Ask about this before payment, so that you are not later confronted with a reclaim.

Frequently Asked Questions

When can I request an advance payment for my personal injury compensation?

As soon as liability is acknowledged or not seriously disputed. The full extent of your damages does not need to be established yet; it is sufficient that it is plausible you are entitled to at least a certain amount.

Do I have to repay an advance payment?

No. An advance payment is a payment toward your final compensation and will be deducted from it. If you receive a €5,000 advance and your damages are later set at €40,000, the remaining amount will be €35,000.

What should I do if the insurer refuses to pay an advance?

First, insist in writing, referring to the Gedragscode Behandeling Letselschade (Code of Conduct for Personal Injury Claims). If that does not work, file a complaint with the insurer and, if necessary, with Kifid (Financial Services Complaints Tribunal). The most effective route is a partial dispute procedure under artikel 1019w Rv, in which you take only the advance payment to court.

Does statutory interest apply to an advance payment?

Statutory interest on the paid portion stops at the time of payment. Interest continues to accrue on the remaining amount of your damages until it is paid.

Does an advance payment count toward my benefits or allowances?

It may: an advance payment can be counted as assets. Check with the agency providing your benefit or allowance beforehand to avoid a later reclaim.

Requesting an advance if you live in Den Haag

Do you live in Den Haag and are you waiting for payment while your costs continue? The rules are national, but the authorities you can turn to in Den Haag are not.

If you first want your advance request checked, you can go free of charge to Het Juridisch Loket Den Haag (the Legal Desk) (Bezuidenhoutseweg 60, 2594 AW Den Haag), telephone 0900-8020. They assess whether your substantiation is complete and whether the insurer is rightly making you wait. See het juridisch loket den haag.

If the insurer continues to refuse, then the deelgeschilprocedure is the designated route. For residents of Den Haag that goes via the Rechtbank Den Haag (the district court), Prins Clauslaan 60, 2595 AJ Den Haag (telephone 088-361 1000). Information about the procedure and the hearings is on rechtspraak.nl.

If in the meantime you find yourself in financial difficulty, then the Gemeente Den Haag (the municipality) is your first point of contact for bijzondere bijstand (special social assistance) or emergency help. Note: a later advance can be set off against assistance already provided, so always report the ongoing personal injury case. The current conditions and application forms are on denhaag.nl.