How long does it take to get paid after a personal injury settlement?

Making and winning a legal claim can feel like a significant milestone. Finding out you’re going to receive the compensation you fairly deserve can be a massive boost and a huge help in your recovery. But how long does it take to get paid after a settlement in the UK? 

Knowing how quickly you’ll receive your compensation is important, especially if you’re depending on the funds to cover expenses, like medical bills or debts. While some settlements are resolved quickly, others can take longer, depending on the nature of the case. 

Here, we’ll outline how long it takes to get paid after a settlement in the UK. We’ll explain how different factors influence the payout timescale and run through practical steps you can take to help speed up the process.

What affects the timeline for receiving a settlement payout?

The circumstances of your case will affect how quickly you receive your payout, including:

The type of settlement

Whether or not your settlement was made in or out of court will likely affect how quickly you receive your compensation. 

Out-of-court settlements are often quicker to resolve than court-ordered settlements, as they avoid legal procedures and additional administrative steps that can delay payments. Court-ordered settlements may take longer due to having more steps involved, stricter court settlement payment timelines, and the need for court oversight.

The insurance provider’s efficiency

Personal injury claim payments will usually be made by the defendant’s insurance company. How efficiently this company deals with paying settled claims will determine how quickly you’ll receive your compensation. Domestic insurers with streamlined processes often pay quicker than foreign insurers, who often have to navigate additional cross-border regulations.

Claim complexity

The complexity of your individual case can also play a part in settlement payment delays, with more complex cases taking longer to close and pay out. Cases that involve medical negligence often have more bureaucratic steps to pass through and have more extensive review processes. Cases that involve multiple parties can also be delayed as insurers and legal teams coordinate to finalise payments.

Typical settlement payout timelines

While each case is unique, there are standard timeframes for receiving a settlement payout depending on the circumstances.

Out-of-court settlements are often the fastest, with payments typically processed within two to four weeks. Often this is closer to two weeks. Court-ordered settlements have a stricter timeline of 21 days, while claims involving foreign insurers may take over a month due to additional administrative hurdles.

As well as insurance payout timescales, you can get an idea of how much compensation you could be owed with our compensation calculator.

Why might payment delays occur?

Although most settlement payments are processed within the expected timeframe, delays can occur due to various reasons, such as:

The defendant’s failure to meet deadlines

Sometimes, the defendant, or their insurer, fails to comply with court-ordered deadlines or agreed-upon payment terms. This can happen due to mismanagement or intentional stalling.

Administrative errors

Errors by insurers or legal teams, such as incorrect bank details or missing paperwork, can slow down the payment process. Prompt communication and attention to detail are essential to avoid settlement payment delays.

Payment processing complications

Issues can occur with the processing of payments, especially for international claims involving foreign insurers. Delays can happen due to differences in banking systems, currency conversion, or compliance with cross-border regulations.

What should you do if your payment is delayed?

If you experience delays in receiving your payout, you should consider:

• Contacting your solicitor: Your legal representative can follow up with the defendant or their insurer to officially address the issue.
• Legal enforcement: In some cases, legal action may be necessary to enforce the payment agreement. Your solicitor will advise when this step is necessary and will be able to trigger it on your behalf.

How to speed up the settlement payment process

You won’t be in full control of how quickly you receive your payment, but there are steps you can take to speed it along. To help ensure a smooth and timely insurance payout timescale, make sure you: 

Keep all communication open and responsive

Keep open lines of communication with your solicitor and the defendant’s insurer. Respond promptly to any requests for additional information or documents to avoid unnecessary delays.

Provide all the necessary documents

Submit all the required documentation, such as your bank details and identification, as early as possible. Missing or incomplete paperwork can stall the process and cause unnecessary delays that can take time to rectify.

Try requesting interim payments

If your needs are pressing and you require immediate financial assistance, ask your solicitor about the possibility of interim payments. These partial payments can help cover urgent expenses while waiting for the full settlement.

Settlement payout FAQs

How is the settlement payout processed?

Once a settlement is agreed upon, the defendant’s insurer or legal team will typically transfer the funds to your solicitor, who will then pass the payment on to you. The process may involve checks to ensure all conditions of the settlement are met before disbursing the funds.

Can I negotiate for faster payment?

Often you can. You won’t be able to in all cases, but in many you’ll be able to request that the defendant agrees to a shorter payment timeline as part of the terms.

What happens if the insurer goes bankrupt or fails to pay?

If the defendant’s insurer is unable to pay, the Financial Services Compensation Scheme (FSCS) in the UK may step in to cover the settlement amount. Your solicitor can guide you through this process if necessary.