An injury to a family member may cause severe consequences for both an injured person and the relatives. Medical bills may arrive; working ability may be impaired; performing everyday activities may become difficult due to an accident.
An insurance company may propose a settlement offer. It may sound appealing, especially if a family faces financial difficulties.
However, making an early acceptance may bring a number of problems when an injured person will need further treatment, cannot work, suffer from pain and have limitations caused by the injury.
Usually, a settlement solves the claims of a claimant. In many cases, signing the agreement also means signing a release, which prevents the injured person from seeking additional compensation for the same accident.
Thus, before making an agreement of this kind, it is better to find out what the whole impact of the agreement is and what compensation covers the losses of the claimant.
Why Insurance Companies May Offer an Early Settlement
An insurance company may offer an early settlement before the claimant has been treated and stabilized.
The time is very important, since some injuries may become worse over time; the injured person may require further surgery, rehabilitation, medications, treatment or any other action. The consequences of the injury may affect working abilities of the injured person, parenting ability, driving and any other aspects of everyday life.
An early settlement may not account for:
- Further medical treatment
- Surgery or rehabilitation
- Loss of income or inability to earn money in the future
- Pain and limitations
- Distress and its consequences
- Transportation and home-care expenses
- Permanence of the injury and disfigurement
- The effect of the injury on family duties
The offer is not a complete evaluation of the claim. The insurance company proposes a settlement depending on the information it has now.
Do Not Sign a Settlement Release Without Understanding It
The settlement papers may contain not only the check sum but also the clauses that free the insurance company, driver, business or any other party of the claims related to the injury.
After signing this release, it will be hard or even impossible to make a new claim regarding the same issue.
Before signing, the injured person or family should understand:
- Whom the release frees from liability?
- Which injuries are covered by the settlement?
- Is there compensation for further medical expenses?
- Are there any medical liens or other expenses that have to be reimbursed from the settlement amount?
- Are there any other claims that are affected by the settlement?
- Does the claimant give up his/her right to make any new claims in the future?
- Is the consent of the court or representation required for this kind of agreement?
If there are any doubts concerning the meaning of some clause, it is better to ask questions before signing the release. The relatives of the claimant should not agree to terms that are unclear to them.
Protect the Injured Person's Medical Recovery
After the injury, medical treatment should be prioritized. Although it is reasonable to make a deal as soon as possible, interrupting treatment just to make the claim is wrong.
Keep organized records of:
- Emergency and hospital treatment
- Doctors and specialists visits
- Prescribed medications and medical equipment
- Physical or occupational therapy
- Transportation to the place of treatment
- Work missed due to the injury
- Symptoms, pains, and physical limitations
- Changes in sleep and other aspects of everyday life
The medical records will be needed to prove what happened and how the injury influenced the person. It will also be helpful to identify further treatment.
It is necessary to follow medical recommendations and report any continuing or worsening symptoms. The decision on the settlement should be made according to the state of health of the injured person, and not just several days or weeks after the accident.
Consider Whether the Injured Person Can Make Decisions Independently
Sometimes, an injured family member is unable to evaluate the settlement on his/her own. This can happen in case the injured person is:
- Child
- Conscious or seriously impaired
- Brain injury patient
- Person with cognitive disability
- Severe mental disease patient
- Under the influence of some medications that impair judgment
Some relative may help in communication with the insurance company, but it does not mean that this person may settle the claim on behalf of the injured one.
The procedure will depend on the age, condition, legal situation and type of the claim. In some cases, the court, the guardian or another representative may be needed.
The family should get legal consultation before signing settlement documents for a minor or an adult who is unable to understand the consequences of this decision.
Look Beyond the Immediate Medical Bills
A settlement should be evaluated considering the losses suffered by the injured person. Medical bills are very important, but they are just a part of the overall losses that are caused by the injury.
Consider questions such as:
- Will the injured person require further treatment?
- Has the injury influenced working ability?
- Does the person earn less money now?
- Does the injury change some family duties?
- Does the person require help in home-care?
- Does the injury affect family relations?
- Is there any permanent injury, scars or limitations?
- Are there any unpaid medical bills or liens?
Keep all the letters, e-mails, estimates, medical records, settlement agreements and other important documents. Document all phone conversations.
A polite request to get more time to think about the proposal is acceptable. The family should not allow repeated calls and pressuring to prevent thorough evaluation.
Be Careful When Speaking With the Insurance Company
It is natural to communicate with the insurance company, but it is better to be cautious while answering the questions and signing any papers.
Avoid:
- Estimating the severity of the injury
- Reporting that the injured person is “fine” when he/she suffers from some symptoms
- Predicting further treatment
- Accepting any guilt until the whole picture is clear
- Discussing the injury and claim on the Internet or in social networks
- Signing a too broad medical authorization
- Making a settlement agreement when the discussion is rushed
Keep all the letters, e-mails, estimates, medical records, settlement agreements and other important documents. Document all phone conversations.
A polite request to get more time to think about the proposal is acceptable. The family should not allow repeated calls and pressuring to prevent thorough evaluation.
What to Do After Receiving a Settlement Offer
A practical response may include the following steps:
1. Ask for the Offer in Writing
Ask the insurance company to provide a written copy of the settlement agreement and all the documents that are offered for signing. Do not rely only on the verbal description of the offer.
2. Continue Appropriate Medical Care
The injured person should comply with the treatment and discuss further symptoms with the medical provider.
3. Gather Financial Information
It includes wage records, medical bills, information on insurance and other expenses.
4. Identify Future Concerns
Ask the doctor whether any further treatment or limitations in working will be required. Think about the consequences of the injury.
5. Review the Release Carefully
Find out what rights the injured person will give up when signing this release. In case of any unclear terms in the agreement, get the clarification.
6. Obtain Legal Guidance Before Accepting
The lawyer will be able to identify some issues that are not obvious and suggest different solutions. Only the injured person or his/her legal representative should make the decision to accept or refuse the settlement.
Questions to Ask Before Accepting a Settlement
Before accepting an offer, consider asking:
- Has the injured person finished his/her treatment?
- Are the medical providers expecting further treatment?
- Does the offer include future medical expenses?
- How are the loss of income and inability to earn money calculated?
- Are there any medical liens or insurance reimbursement claims?
- Does the release cover all responsible parties?
- Is the injured person able to accept the offer?
- Could accepting this offer affect another claim or benefits?
- What will happen if the condition of the injured person becomes worse?
- What rights the injured person will give up when signing the release?
If the family cannot answer these questions, it may be too early to finalize the settlement.
Can a Settlement Offer Be Rejected?
Usually, a settlement offer may be refused or left for consideration. However, there are some legal deadlines in injury claims, and waiting too long may cause other problems.
The family should not think that the insurance company’s deadline is the same as the deadline for the claim. It is necessary to find out not only the deadline for the offer but also the deadline for the claim itself.
The lawyer will be able to give the family an advice on the available options regarding the facts, injuries and the status of the claim.
How Cain Firm Can Help Review an Injury Settlement
Cain Firm provides professional legal assistance to the families making decisions about their injury claims and settlement offers. The law firm will be able to examine the papers, discuss the losses and help the family to understand the consequences of making an agreement.
If your family member has received a settlement offer due to his/her injury, contact Cain Firm via cainfirm.com.
No specific results may be guaranteed. Each injury claim is individual and depends on its facts, medical information and applicable law.
Frequently Asked Questions
Should my family member accept the first settlement offer?
It is not obligatory to accept the first offer. This offer may not cover all the future medical expenses, lost wages or other losses.
What happens if my family member signs a release?
A release may prevent the injured person from making new claims for the same accident. The exact consequences of the agreement will depend on the content and conditions of the offer.
Can I accept a settlement for my injured child?
There are special legal procedures of settlement for the children. Do not sign any papers for an injured child without clarifying these procedures.
What if the injured person cannot make decisions?
In case the injured person is unable to understand or accept the agreement, the legal representative may act on his/her behalf. This process will depend on the conditions and the legal status of the injured person.
What records should we keep?
It includes medical records, medical bills, wage information, insurance information, settlement documents, receipts, photographs and any other documents.
This article is provided for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Laws change and every case is different. For advice about your specific circumstances, please consult a licensed Texas attorney.