Despite the implementation of strict liability rule in the State of California, certain dog owners still fail to ensure that their pets cannot do harm to others. In California, numerous of personal injury cases due to dog bite accidents are filed each year. In fact, according to statistics, roughly 5 million Americans are bitten by dogs each year – not a small number in any way you look at it.
Dog bite accident victims often experience a series of inconvenience which usually includes costly medical bills, lost wages, physical pain, and even emotional distress. The mentioned aggravating factors are the reason why animal bite victims have the right to assert for compensation claim or settlement. One of the more known types of dog bite case settlement is structured.
What is structured settlement?
In legal sense, a structure settlement is an arrangement that provides a dog bite accident victim with regular payments over the duration of several years or for the rest of his or her life. The amount that may be rewarded to the victim will be based on different aspects of the case, such as the extent of the injury inflicted by the dog.
Advantages and disadvantages of structured settlement
Just like any type of plaintiff-defendant agreement, structured form of settlement offers both advantages and disadvantages to dog bite victims.
The following are the determined benefits of pursuing a structured settlement:
• Dog bite victims who opt to choose structured settlement to compensate their injury may acquire a substantial tax benefits because the funds obtained from an annuity are not taxable
• The payments that are received from structured settlement are maintained throughout the time of the victim’s disability
• Annuity funds brought about by a structured settlement are managed by professionals
• Most of the time, annuities are protected by state insurance laws
• Structured settlements may compensate unexpected additional medical needs of the victim
Despite the promising advantages of structured settlement, there are also minor setbacks this type of settlement may cause, including:
• Structured settlements may be affected by economic problems like inflation and recession which can make the amount of annuity small
• There are times that the annuity is placed with brokers who do not have enough protection for insolvency
• Certain insurance companies are hesitant to divulge the amount they will have to pay to compensate annuity coverage for the settlement which can make a personal injury claimant confused