In Alberta, the Insurance Act (at Section 581) and the Fair Practices Regulation (Section 5. (3) give an injured claimant in a personal injury claim resulting from a motor vehicle accident the right to make a claim for an advance payment against their eventual settlement. These payments are known in the insurance industry and among personal injury lawyers as Section 581 Advance.
The need for this claim for an advance payment arises when a claimant who has suffered injuries in a serious motor vehicle accident is in dire straits, resulting from their inability to work due to the disability that resulted from the motor vehicle accident. The injured claimant from the motor vehicle accident has also used up all available coverages from their private or workplace disability insurance and accident benefits coverage. In many of these cases, the client has incurred loans and maxed out all available credit cards and /or a line of credit.
What Gives? Am I Eligible for a Section 581 Advance?
You may be eligible for a Section 581 Advance. The objective of a Section 581 advance payment in a motor vehicle accident claim in Alberta is to ensure payment is made to an injured claimant who is in dire need of financial assistance, without the payment being prejudicial to the defendant or the defendant insurance company’s ability to continue to defend the action. In fact, the fact of the payment of the advance cannot be disclosed to the judge or jury until after the judgement in the event of a trial.
Payment of an advance payment in a motor vehicle accident claim in Alberta can help ease the financial burdens that victims of personal injury claims resulting from a serious accident can encounter.
Obtaining a Section 581 advance after a motor vehicle accident is a complicated area of personal injury law in Alberta and requires an experienced personal injury lawyer to assist you navigate this claim. Some insurance companies may not voluntarily pay this amount which would require your personal injury lawyer to make a court application.
David Sowemimo’s Track Record with Section 581 Advances
Our founder, David Sowemimo successfully obtained one of the highest reported court decisions for an Advance payment in Alberta. In Alexander v. Td Insurance, he fought for his client and obtained a $75,000 lump sum advance payment for his client. Don’t suffer in silence, you may be eligible for a Section 581 advance; give us a call right away for a free consultation to determine if you qualify for an Advance payment.
Other Frequently Asked Questions You May Have About Section 581 Advances
If you’ve been injured in an accident, you might wonder if you can receive an advance payment from the at-fault driver’s insurance company before settling your case. This FAQ section covers everything you need to know about Section 581 advances, including eligibility and how the process works.
How do i know If I Qualify?
A serious motor vehicle accident can have serious financial consequences for your family and ability to pay the bills. You should contact an experienced personal injury lawyer to determine if you qualify and what steps your lawyer would need to take in the event that you qualify. All cases are different. You should discuss your situation with one of our experienced lawyers to determine if you qualify. In the event that your lawyer needs to make an application in court to obtain a Section 581 advance for you, the judge considers a series of factors. It is critical that you consult a personal injury lawyer to assess your eligibility for a Section 581 Advance in your personal injury claim.
Do I have to go to court to obtain an advance payment?
Not necessarily. Your experienced personal injury lawyer may need to obtain a sworn affidavit that they may rely on in court. The insurance company lawyer may then need to question you on the affidavit. The questioning would likely be held virtually or in your lawyer’s office. So, you may not need to attend court unless you want to.
How is the value of the advance payment calculated and arrived at?
Several factors are weighed to determine how much advance payment you are entitled to. Some of the factors include your household income before and after the subject accident, the severity of your injuries, potential liability issues, your household’s financial burdens, loans incurred due to your motor vehicle accident disability and so on. This list is certainly not exhaustive, you should contact an experienced personal injury lawyer at our office to get advice specific to your situation.
