Everything You Need to Know About Parental Indemnity Settlements

Introduction

Parental indemnity settlements are an important aspect of personal injury cases involving minors. When a child sustains an injury and a settlement offer is made by the driver's insurers, the parent is often required to sign a parental indemnity agreement before the funds can be released. In this blog post, we will explore the key considerations and options when faced with a parental indemnity settlement.

Understanding Parental Indemnity

Parental indemnity is a legal concept that arises when a claim is made on behalf of a minor. In such cases, a litigation friend, usually a parent or carer, acts on behalf of the child to bring the claim. This is because a minor cannot bring a claim themselves and requires representation in their best interests.

When a settlement offer is made, the parent is often asked to sign a parental indemnity agreement. This agreement ensures that the funds received on behalf of the child are used for their benefit and not for any other purpose.

Infant Approval Hearing vs. Parental Indemnity Agreement

It is important to understand the difference between an infant approval hearing and a parental indemnity agreement. An infant approval hearing is a legal process where a court reviews and approves any personal injury compensation awarded to a minor. This ensures that the settlement is fair and in the best interests of the child.

On the other hand, a parental indemnity agreement is a contractual arrangement between the parent and the driver's insurers. It is often used as a way to expedite the settlement process by bypassing the need for a formal court approval.

Key Considerations for Parental Indemnity Settlements

When faced with a parental indemnity settlement, there are several key considerations to keep in mind:

• 1. Seek Legal Advice: It is crucial to seek legal advice before signing any parental indemnity agreement. An experienced personal injury solicitor can guide you through the process and ensure that your child's best interests are protected.
• 2. Understand the Settlement Offer: Take the time to carefully review the settlement offer and understand the implications of accepting it. Consider factors such as the extent of your child's injuries, the long-term impact, and any ongoing medical expenses.
• 3. Consider Future Expenses: It is important to consider any potential future expenses that may arise as a result of your child's injury. This could include ongoing medical treatment, rehabilitation, or educational support.
• 4. Consult with the Litigation Friend: If you are acting as the litigation friend for your child, consult with them and consider their wishes and preferences. While the ultimate decision lies with the parent or carer, it is important to involve the child in the process to the extent possible.

Benefits of Involving the Court

While a parental indemnity agreement may seem like an expedient option, there are several benefits to involving the court in the settlement process:

• 1. Judicial Oversight: An infant approval hearing provides judicial oversight, ensuring that the settlement is fair and in the best interests of the child.
• 2. Protection of Funds: When a settlement is approved by the court, the compensation funds are typically invested in court until the child reaches the age of 18. This ensures that the funds are protected and used for the child's benefit.
• 3. Legal Costs: By involving the court, you may be able to claim your legal costs of using a solicitor to represent you at the hearing.

Conclusion

Parental indemnity settlements are an important aspect of personal injury cases involving minors. When faced with a parental indemnity agreement, it is crucial to seek legal advice, carefully review the settlement offer, and consider the best interests of your child. While a parental indemnity agreement may seem like an expedient option, involving the court can provide additional protections and benefits. Ultimately, the decision should be made with the guidance of an experienced personal injury solicitor to ensure the best possible outcome for your child.