As large claims are increasingly becoming prevalent, insurance companies are now looking for less expensive alternatives. Structure settlement is one cheaper alternative to huge lump sum payments. It is basically a package of upfront cash and a deferred payment of small installments running down to several years. This kind of legal agreement is generally given to accident victims if the defendant's attorney strongly believes that the victim will most likely win the law suit.
As a claimant you need to be smart while dealing with the situation. Sometimes the settlement looks attractive to the injured party but it may be not that beneficial. It generally happens that if the plaintiff has put forward strong case and defendant's attorney fear of losing easily they try to settle the case outside the court of law.
The structured settlement can basically work as a pretrial settlement tool which is beneficial for both the parties. Plaintiff will get a financial support for several years as compensation for his damages while the defendant also gets enough time to pay him slowly in small installments.
However the settlement money is vulnerable to the inflation erosion. Depending on the prevailing inflation rate if you calculate the net loss over the period of 10 years the amount will be huge. This aspect should also be considered while settling the statement by both parties.
The courts also take into consideration other factors depending on the situation. The court may direct the defendant to purchase an annuity or establish a trust for the victim so that he can get his periodic payments regularly. Either way sufferer should get the strong assurance of continued financial security under structured settlement.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น