Systematic information was obtained on 96 subjects who were all those
seeking compensation from a cohort of 172 consecutive road accident in
jury victims. Subjects were interviewed immediately after the accident
, and again at three months and one year. Further telephone or postal
information was obtained about compensation proceedings for up to six
years. Compensation proceedings were often prolonged and final settlem
ents were modest and late in relation to the losses suffered. Awards w
ere largely used to make up financial losses. However, they failed to
meet needs, especially the considerable early financial problems. Ther
e was no evidence that subjects exaggerated their losses; many preferr
ed not to claim or to settle early. There was no evidence that settlem
ent was followed by significant change in clinical state. There was co
nsiderable dissatisfaction with the procedures for obtaining compensat
ion. Subjects were often more concerned with recognition of their dist
ress and suffering than with the size of financial settlements. Seekin
g compensation was not a major predictor of medical and social outcome
.