Demanding an advance on personal injury compensation: your ultimate guide
When you sustain personal injury, for example due to a traffic accident, workplace accident, or medical error, not only does recovery come first, but also your right to appropriate compensation. However, obtaining that compensation can often be lengthy due to investigation, determination of liability, and determining the extent of the damage. To prevent financial problems in the meantime, you can demand an advance on your compensation from the liable party or their insurer.
In this comprehensive guide, you will read everything you need to know about demanding an advance on compensation: what it entails, what the average advance is, how quickly it is paid out, and what you can do if the insurer refuses to pay.
What is an advance on compensation?
An advance on compensation is an early payment by the liable party or their insurer, before the full compensation is definitively determined and paid. The advance serves as pre-financing for (a part of) the compensation you are ultimately entitled to.
You could, for example, think of the costs for medical treatments, home modifications, or loss of income, which you already have to pay for now. An advance prevents you from having to pay these costs out of your own pocket while your full claim is still pending.
From a legal perspective, it is not an obligation for the liable party to provide an advance, but it is customary and often wise to do so to prevent unnecessary financial stress.
Why request an advance?
Requesting an advance can be necessary in many cases. Here are the main reasons:
- Preventing financial problems: The damage and its consequences, such as medical costs and loss of income, can immediately have a significant impact on your financial situation.
- Improving your recovery: With an advance, you have the means to pay for necessary care and rehabilitation costs, which benefits your recovery.
- Proving liability: Sometimes, requesting and obtaining an advance can signal to the insurer that your claim is serious.
- Saving time: It can take months before your entire claim is finalized. An advance ensures that you do not have to wait until everything is completely settled.
How much is an average advance?
The amount of an advance depends on various factors, such as the nature and extent of your damage, the degree of liability, and how clear the burden of proof is.
Average advance amount
- Medical costs and urgent expenses: These can often be almost fully granted as an advance because they are clearly demonstrable.
- Loss of income: An advance is usually only granted if there is sufficient proof of income and loss. The insurer will often advance a percentage of your suffered income loss.
- Non-pecuniary damage (pain and suffering compensation): This component is often determined at a later stage, and an advance on this is rarely given.
In practice, an advance is often between 20% and 60% of the expected total compensation, depending on the clarity and substantiation.
Example
Suppose your total damage is expected to be €50,000, then you can count on an advance of approximately €10,000 to €30,000, depending on the situation and evidence.
How quickly is an advance paid out?
The speed of payment depends on:
- The degree of liability: Is it clear that the opposing party is liable?
- Proof of damage: How complete and clear is your proof of suffered damage?
- Cooperation of the insurer: Some insurers act faster than others.
Time indication
- After submitting a request: The insurer often takes 2 to 6 weeks to assess your request.
- With clear liability and evidence: An advance can be paid out within 2 to 4 weeks.
- In more complex cases: It can take longer (6 to 12 weeks).
It is good to know that in case of urgent financial problems, you can indicate this; in some cases, insurers can then proceed to payment more quickly.
What types of costs can be advanced?
An advance can cover various types of damage costs. Often, you will have to demonstrate this with evidence such as invoices, statements, or medical reports. The most common items for which an advance is given are:
- Medical costs: Treatments, physiotherapy, medication, and medical aids.
- Loss of income: Partial or full incapacity for work with loss of salary.
- Modifications to home or car: For example, stairlifts, wheelchairs, or special vehicles.
- Domestic help: If you are temporarily unable to do your own household chores.
Non-pecuniary damage such as pain and suffering (smartengeld) is usually not paid by advance but in a final settlement.
What if the insurer refuses to give an advance?
It can happen that the insurer does not want to pay an advance. The reasons for this can be:
- Insufficient evidence: The insurer believes that you have insufficiently substantiated how much damage you have suffered.
- Uncertainty about liability: An investigation is still ongoing into whether the opposing party is liable.
- Dispute over the extent of the damage: There is disagreement about what is valid as an item of damage.
What can you do then?
- Hire an experienced personal injury lawyer: A specialist can strengthen your file, collect evidence, and convince the insurer.
- Draft a clear and well-documented request: Provide medical statements, pay slips, and invoices.
- Negotiate and communicate in writing: Record all agreements and requests by e-mail or letter.
- File a complaint with the insurer: Every claim process has a complaints procedure.
- Consider legal action: In serious cases, you can go to court to enforce an advance.
Example situation
Mr. Janssen had an accident and needed urgent medical care, but the insurer ruled that liability had not yet been established and refused an advance. With legal support from Arslan & Arslan, the file was strictly substantiated, and the insurer was forced to pay an advance of €15,000 within 3 weeks.
The role of Arslan & Arslan Advocaten in demanding an advance
Arslan & Arslan Advocaten specializes in personal injury cases and understands the impact personal injury has on your life. We advise and guide you at every step, including demanding an advance on compensation.
What can you expect from us?
- Free initial advice: We assess your case free of charge and without obligation.
- Free legal assistance: Based on Article 6:96 of the Dutch Civil Code (BW), the liable party (via their insurer) fully covers your legal costs and lawyer’s fees.
- Individual approach: We look at your situation personally and provide a customized strategy.
- Collecting evidence: From medical reports to pay slips, we ensure a conclusive file.
- Negotiation with insurers: Our experience helps to realize an appropriate advance as quickly as possible.
- Complete unburdening: We take the legal and administrative work off your hands, so you can focus on recovery.
Why request an advance in time with legal help?
By demanding an advance in time, you prevent yourself from getting into financial problems during an often lengthy damage process. With our expertise, you prevent the insurer from unjustifiably refusing your request or causing delays.
Conclusion
An advance on compensation can give you financial breathing space during the settlement of your personal injury claim. The amount and speed of an advance depend on your personal situation, the evidence you can provide, and the degree of liability. Although an advance is not mandatory for an insurer, it is often wise to insist on this.
If the insurer refuses, it is important to seek legal assistance immediately. Arslan & Arslan Advocaten will gladly assist you in getting your rights, without this causing you financial worries.
Contact us today for free advice and a strong start to your personal injury claim.
Disclaimer: This article contains general information and does not replace customized legal advice. Contact your lawyer for personal support.
More information about advance and compensation
Do you want to know more about the personal injury process? View our page on personal injury services or read when you should hire a personal injury lawyer. Also view our guide on personal injury amounts and pain and suffering compensation.
For the legal basis of the advance, we refer to Civil Code Book 6 (Burgerlijk Wetboek Boek 6) on Overheid.nl.
Do you want to request an advance on compensation? Contact Arslan & Arslan Advocaten for free advice about your advance on compensation. Our personal injury lawyers will help you free of charge in claiming an advance on compensation.
Time limits in the personal injury process
| Phase | Time limit (GBL standard) | Explanation |
|---|---|---|
| Response to notice of liability | 14 days | Insurer must confirm receipt |
| Determination of position on liability | 3 months | After receipt of all necessary information |
| First advance after acknowledgement | 14 days | After acknowledgement of liability |
| Subsequent advances | Every 3–6 months | Based on interim statement of damage |
| Response to claim/proposal | 6 weeks | After receipt of substantiated statement of damage |
| Requesting medical advice | 6 weeks | After application to medical advisor |
| Total processing time (average) | 1–3 years | Depending on complexity and final medical state |
| Statute of limitations (Verjaring) | 5 years | From the moment damage and liable party are known (Art. 3:310 BW) |
Source: Code of Conduct for the Treatment of Personal Injury (Gedragscode Behandeling Letselschade – GBL). If these time limits are exceeded, your lawyer can hold the insurer in default.
