What is the meaning of an interim payment?

Written by andre zollars
  • Share
  • Tweet
  • Share
  • Pin
  • Email
What is the meaning of an interim payment?
An interim payment is often made while waiting for other payments. (dollar bill image by jimcox40 from Fotolia.com)

The term "interim payment" has numerous applications across different industries. The bottom line, however, is that it is a payment made between other payments. The specifics are unique to each industry. There is even a related legal term of "interim order" which has a similar meaning.

Other People Are Reading

Origin

"Interim" comes from the Latin "inter," meaning between, and dates from about 1580. It is a noun, but functions as an adverb in "interim payment."

Financial Definition

The Financial Dictionary defines an interim payment as one that is made while waiting for the size of the other payments to be decided or simply for the other payments to be made. For example, "He made an interim payment of £3,250 on the loan, until the final loan amount was decided."

Insurance Definition

Defined strictly as applicable to the insurance industry, the amount paid in partial settlement of a claim is an interim payment. This doesn't mean the claim is settled. Other parts of your claim will still be dealt with. For example, "I received an interim payment from the insurance company to purchase a new car because my vehicle was totalled."

Related Definition: Legal

In the legal world, there is a closely related term with a similar meaning--"interim order." An interim order is a temporary court order that is for a limited duration until a complete order is handed down after a full hearing. For example, "She received an interim order to receive child support, until the date of the full hearing."

Practical Example

It is common in the event of tragic accidents for the responsible party to issue an interim payment to victim's families. For example, in May of 2010 Air India issued interim payments for the families of the 122 victims who died in the Mangalore plane crash.

Don't Miss

Filter:
  • All types
  • Articles
  • Slideshows
  • Videos
Sort:
  • Most relevant
  • Most popular
  • Most recent

No articles available

No slideshows available

No videos available

By using the eHow.co.uk site, you consent to the use of cookies. For more information, please see our Cookie policy.