Try to negotiate a fair settlement

Dear Mr. Tan

I need your personal advice regarding a traffic accident claim for my relative.

He was hit by a motorbike and has been seriously injured for more than half a year. I engaged a lawyer and the case is now being decided by the court. The insurer's lawyer is asking for settlement out of court.

The insurer is offering a partial settlement due to contributory negligence on the part of my relative. Is the proposed settlement fair? What is your advice?

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REPLY

Let me give you my suggestion:

1. Ask your lawyer to give a report to you, stating his recommendation on the apportionment of liability and on the quantum that is claimable for special and general damages

2. Ask the insurer's lawyer to give the reason to support their offer.

3. Meet with the insurer (in the presence of your lawyer) to negotiate a settlement.

4. If there is a large gap, suggest that the matter be referred to an arbitrator that is appointed by both parties.

5. Try to find a reasonable settment, so as to reduce the legal fees on both sides. A contested cases can be costly (ie legal fees can take away 30% to 50% of the total settlement) and take a long time to settle.

6. Generally, the insurer is willing to come to a fair settlement, to avoid the costly legal fees.