When you are involved in an accident and sustain personal injury, there are different ways your case can be handled. Two common methods are the pragmatic settlement and the settlement through a settlement agreement (VSO). Both methods have their advantages and risks, but it is important to understand what they entail before making a decision. In this article, we explain the differences and discuss the pros and cons of both approaches.

What is a Pragmatic Personal Injury Settlement?

A pragmatic settlement refers to a fast and simple solution often proposed by the insurer to handle the damage claim quickly and efficiently. In this case, the damage is not fully assessed based on all relevant facts and circumstances. The insurer offers a lump sum, often early in the process, through which the case is bought off without an in-depth investigation into the total damage.

Characteristics of a pragmatic settlement:

• Fast solution: The case is often handled early, so that you receive compensation quickly.
• No complete assessment of damage: The insurer makes an offer without all damages, such as medical expenses or future damage, having been fully mapped out.
• Buyout offer: It often involves a one-time payment where you give up further claims.
• Benefit for the insurer: The insurer often tries to save costs by settling the case quickly and cheaply.

Although a pragmatic settlement can seem attractive at first glance, especially because you receive money quickly, there are also significant risks. You run the risk that you do not get the full compensation to which you are entitled, especially if there are still medical or additional costs that only become clear later.

What is a Settlement Agreement in Personal Injury?

A settlement agreement (VSO) is a formal agreement between the victim and the liable party, often the insurer. All agreements about the handling of the compensation for damages are recorded in this agreement. It is a more formal and definitive way of handling a personal injury case.

Characteristics of a settlement agreement:

• Complete damage assessment: The total damage is assessed, including future damage and pain and suffering compensation.
• Final release: After signing, you waive further legal claims. The case is then definitively closed.
• Medical reservation possible: In some cases, a medical reservation can be included, allowing you to claim further damage in the future if your health deteriorates.
• Protection of your rights: The settlement agreement is drawn up to protect your interests and provides security about the settlement.

Differences between Pragmatic Settlement and Settlement Agreement

The main difference between a pragmatic agreement and a settlement through a settlement agreement is the degree of thoroughness and protection of your rights.

1. Thoroughness of damage assessment

• In a pragmatic agreement, the damage is often handled quickly and without in-depth investigation. This can mean that future damage items are overlooked.
• In a settlement agreement, the full damage is mapped out, including medical costs, loss of income, pain and suffering compensation and any future damage. This gives you a more complete compensation.

2. Speed

• A pragmatic agreement is usually faster. The insurer offers you a lump sum to handle the case quickly.
• A settlement agreement often takes more time, as all aspects of the damage are carefully investigated and recorded.

3. Risk of Insufficient Compensation

• In a pragmatic agreement, there is a risk that you do not get the full compensation you need, especially if more damage occurs later or medical complications arise.
• In a settlement agreement, by including a medical reservation, you can still claim future damage if new complications arise.

4. Final Release

• In both methods, final release can be agreed upon, but in a pragmatic agreement this is often offered earlier, without you being fully aware of your rights and future damage.
• In a settlement agreement, final release is only agreed upon after you have been fully informed and all damage items have been included, which provides more certainty.

The Importance of a Medical Reservation in a Settlement Agreement

An important advantage of a settlement agreement is the ability to include a medical reservation. This reservation ensures that you, even after the agreement has been signed, can claim additional compensation if your medical situation deteriorates in the future. This is crucial for victims of personal injury, as the injury sometimes only becomes fully clear in the long term.

Conclusion: What is the Best Option?

Whether a pragmatic settlement or a settlement agreement is the best option for you depends on your situation. If your injury is clear and no complications are expected, a settlement agreement without reservation may be a good way to definitively close the case. But if there is still uncertainty about your recovery or if the full damage is not yet clear, it is often better to wait for a medical end situation and opt for a settlement agreement with a medical reservation.

When in doubt, it is always advisable to seek advice from a specialized personal injury lawyer. At Arslan Lawyers, we are ready to advise you and ensure that you receive a fair and full compensation for your personal injury.

Feel free to contact us for a non-obligatory advice conversation. We are happy to help you further with your personal injury case and ensure that you make the right choice for your situation.