Settlement spending. What’s your opinion?

Posted 15th June 2016

Final claims settlements can be formed of many components. Depending on the nature of the claim and injury the settlement may include provisions for the future cost of rehabilitation treatment, ongoing care needs, equipment and perhaps even ongoing case management.


Some claimant's spend their compensation wisely and others not. There is little evidence out there as to what claimant's spend their money on post settlement.


Aviva published an interesting document in 2014 showing what a survey of their Whiplash claimant's spent their money on post settlement. This survey revealed only 47% spend compensation on medical rehabilitation and physiotherapy while the other 64% spent it on luxury items, holidays or paying off debts. To read the Aviva article, click here.


There are of course two opinions here. Some think that compensation should be spent on what it was originally allocated for and perhaps these funds should be legally ring fenced to prevent alternative/inappropriate uses. The other opinion is that the compensation is the claimants and what they ultimately spend their money on is irrelevant as it is their settlement for being injured as a result of an accident that was not their fault.


What’s your opinion?


By Adam Shelverton

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Chris - 6 years ago

A very interesting read. In my opinion, those individuals who spend their compensation on luxury items are usually the ones who do not have genuine injuries. As a case manager, the vast majority of people that I come across would sacrifice all of their damages, if it would give them a reduction in their symptoms to allow them to get closer to normality.