Limitation period for compensation claims: What you should know

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Published: May 26, 2025

When you have a claim for compensation – whether following a personal injury, breach of contract or financial loss – it is important to act within certain time limits. If you wait too long, your claim may be time-barred and you will lose the right to have it fulfilled.

What is obsolescence?

Statute of limitations means that a claim can no longer be asserted if it is not reported within certain deadlines. For compensation claims, this applies to both:

  • In the event of a breach of contract (e.g. inadequate craftsmanship)
  • In the event of damage outside the contract (e.g. personal injury or financial loss)

A claim may be time-barred either because too much time has passed from the time the claim could have been met until you actually demand payment, or because you cannot invoke any additional deadlines.

Why do compensation claims become time-barred?

Statutes of limitations serve an important function in the legal system. They are designed to:

  • Protect the responsible party from very old and unresolved claims
  • Ensure that disputes are resolved while evidence and documentation are still available
  • Create predictability for both the injured party and the person who may have to pay

In short: the older a claim is, the more difficult it is to prove what actually happened. That's why there are absolute deadlines.

When does the statute of limitations start?

Main rule - 3 years

The general limitation period is 3 years . This follows from Section 2 of the Limitation Act. When the period begins to run depends on the type of claim in question.

Claims for damages in the event of breach of contract

In the event of a breach of contract, the limitation period runs from the time the breach occurred – normally upon takeover or delivery , not from when you discover the fault.

  • Main rule**: 3 years** from the breach (purchase/delivery/takeover)
  • Exception: Possible extension of 1 year, calculated from when you discovered or should have discovered the error.

Example: You have plumbing work done in 2018, but discover in February 2023 that a mistake has been made. The limitation period still ran from 2018, and when the mistake was discovered, more than three years have passed and the limitation period has therefore expired. If you could not have discovered this earlier, you have the opportunity to get an additional period of one year – until February 2024 – to file a claim, even though more than three years have passed since the work was performed.

Claims for damages outside of contract

If you claim compensation from a party with whom you are not in a contractual relationship, the time limit runs from the date you received or should have received the necessary knowledge of both the damage and the person responsible.

  • Rule of thumb: 3 years from actual knowledge
  • Exception: Absolute maximum period of 20 years from the time of damage

Example: You injure yourself after falling on ice outside a store in 2022, but the doctor only proves permanent damage in 2024. The statute of limitations starts in 2024.

How can you stop obsolescence?

Prescription can be interrupted in the following two main ways:

  1. Acknowledgement – ​​the responsible party acknowledges the claim, e.g. by making a partial payment
  2. Legal action – you send a settlement complaint, summons or complaint to a body with authority
  3. Agreement – ​​the person responsible approves that the limitation period is extended through agreement

When the statute of limitations is interrupted, the original statute of limitations is interrupted and reset . This means that a new statute of limitations – usually three years – begins from the time the interruption occurred.

How to secure your rights

  • Keep track of the dates – Note when the damage occurred and when you discovered it.
  • Document everything – Collect receipts, emails, agreements, and other relevant communications.
  • Seek help early – Talk to a lawyer if you are unsure about which deadlines apply.

Do you need legal assistance?

The statute of limitations can be challenging to navigate, especially when there is uncertainty about when the statute of limitations starts or whether it has been interrupted. If you are in doubt about whether your claim can still be enforced, it may be a good idea to get a legal opinion.

At Insa lawyers, you will receive assistance from an experienced lawyer in tort law who knows the regulations and what is needed to secure your rights.

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Personal Injury Compensation: Everything You Need to Know

An accident can turn your life upside down in seconds. When a personal injury occurs – whether on your way to work, in traffic, during medical treatment or in your free time – it can give you the right to financial compensation. But how does personal injury compensation actually work, and why should you consider contacting a specialist lawyer?

In this guide, you will get an overview of your rights, what types of damage give rise to compensation, how the amount is calculated – and not least why legal help can make a big difference.

What is personal injury compensation?

Personal injury compensation is a financial compensation you may be entitled to if you have been physically or mentally injured as a result of an incident for which someone else is responsible. The compensation is intended to ensure that you are not left alone with the costs and losses that the injury entails – and should, in theory, put you in the same financial situation as before the incident.

What damages give rise to the right to compensation?

There are several types of situations that can provide grounds for personal injury compensation. The most common are:

  • Traffic accidents – as a pedestrian, cyclist, passenger or car driver.
  • Occupational injuries – if you are injured during working hours or in the workplace.
  • Patient injuries – for example, due to malpractice or inadequate healthcare.
  • Violence and assault – where you are entitled to redress or victim compensation.
  • Accidents during leisure time – where others can be held responsible, for example due to lack of supervision.

This must be in place to receive compensation.

In order for you to receive personal injury compensation, four basic requirements must be met:

  1. Someone must be responsible – there must be a responsible party, either an individual, employer or insurance company.
  2. There must be an injury - both physical and psychological injuries are covered.
  3. You must have suffered a loss – for example, loss of income or expenses for treatment.
  4. There must be a causal connection – between the incident and the loss you have suffered. That is, you must be able to prove that the damage was caused by the incident in question.

How is the compensation calculated?

Calculating personal injury compensation is rarely simple. Compensation is often divided into the following categories:

  • Lost income – both what you have lost so far and what you will lose in the future.
  • Expenses you would not have had without the injury – such as medical treatment, travel, aids and accommodations.
  • Disability compensation – if the injury causes you to have a permanent medical disability.
  • Compensation for damages – in the event of gross violations, for example intentional violence, deprivation of liberty, abuse in close relationships or rape.

Each case is assessed individually, and the amount you receive depends on the extent of the damage, how much you lose financially, and what consequences the damage has on your life.

What can a lawyer help you with?

The legal system can be challenging to understand, and many injured parties face large insurance companies alone. This is where a lawyer with experience in personal injury compensation can be of invaluable assistance. A specialized lawyer can:

  • Consider whether you have a legitimate claim.
  • Collect and structure necessary documentation.
  • Ensure correct calculation of compensation.
  • Negotiate on your behalf with insurance companies.
  • Handle complaints or take the case to court if necessary.
  • Relieve yourself.

Many people are offered lower compensation than they are actually entitled to. With legal assistance, the likelihood of a correct and fair settlement increases.

Do you need legal assistance?

Applying for compensation can be demanding, especially in complex cases or if you have been denied and are considering appealing.

At Insa advokater you can get assistance from an experienced tort lawyer who knows the system and how to protect your rights. We help you with everything from assessing the case and collecting documentation, to submitting the application and handling complaints if necessary.

Compensation for unfair dismissal

Have you been dismissed by your employer? If the dismissal is unfair, you are entitled to compensation. An employee cannot be dismissed unless it is objectively justified by the circumstances of the company, the employer or the employee.

The requirement for objectivity means that the dismissal must not be based on extraneous or improper considerations. In addition, the circumstances invoked as grounds for dismissal must be sufficiently weighty to justify dismissal. The factual basis for the dismissal must also be correct. The employer has the burden of proof in dismissal cases, which means that the employer must prove that the dismissal is objective.

Do you suspect that your employer has no objective basis for the dismissal and want to claim compensation? We at Insa advokater can help you with this process.

The legal system is such that you as an employee can claim compensation if the dismissal is unfair. The compensation is set at the amount that the court finds reasonable, taking into account the financial loss, the employer's and employee's circumstances and the circumstances in general.

Normally, you will be entitled to compensation for the financial loss you suffer until the judgment is delivered. In the assessment of compensation, it may also be considered whether you have a future financial loss as a result of the uncertainty of finding new work. You may also be entitled to compensation for non-economic loss if the employer has not followed the procedural rules in the law, for example if you were not invited to a discussion meeting before you were dismissed. Remember that you are also entitled to written notice of termination.

ATTENTION: According to the Working Environment Act, there are different time limits for legal action, depending on what you as an employee are claiming. For compensation due to unfair dismissal, the deadline for legal action is six months from the date of dismissal.

Are you unsure about your rights after being dismissed? Do you want compensation without taking the case to the courts? We have skilled lawyers in employment law who can help you in negotiations with your employer. Contact us for an informal conversation .

Statute of limitations for monetary claims – Complete guide

Understanding the statute of limitations for monetary claims is essential for both the creditor (claimant) and the debtor (debtor). Statute of limitations means that a claim lapses after a certain period of time, which means that the creditor loses the right to collect the monetary claim. This is regulated in the Statute of Limitations Act.

What is obsolescence?

Statute of limitations means that the right to collect a debt disappears after a certain period of time. This is stipulated by law and exists to ensure that claims cannot be collected many years after they arose.

When a claim becomes statute-barred, it means that the person who owes money no longer has a legal obligation to pay, even if the debt was originally valid.

The general limitation period

The general statute of limitations for monetary claims is 3 years . When the three-year statute of limitations applies, it means that if someone owes you money, you must claim it back within three years, otherwise you lose the right to get it back. As a general principle, the statute of limitations starts to run when the claim becomes due.

Example: If you lend money to a friend on January 1, 2025, and you have not agreed on a specific repayment date, your claim will become statute-barred on January 1, 2028.

Exceptions to the general deadline

Some types of claims have longer deadlines. For example:

  • Claims with a written agreement (debt) which typically include bank loans – If you have a written agreement for the loan, the statute of limitations may be 10 years .
  • Compensation claims – If you claim compensation for an injury, there may be special rules that provide a longer period, up to 20 years in certain cases.

What if you didn't know about the requirement?

In cases where one has not been aware of the requirement, an additional period of one year may be granted from the day one gained or should have gained such knowledge, cf. the Limitation Act, Section 10, No. 1. For contractual obligations, there is an absolute limit of 13 years from the due date, which includes the general period of three years plus a possible extension of ten years.

Interruption of the limitation period

The limitation period can be interrupted in several ways. The most common method is to take legal action against the debtor, for example by filing a settlement complaint or summons. The period can also be interrupted if the debtor acknowledges the claim, either by paying part of the amount owed or otherwise acknowledging the debt.

Absolute limitation periods

For claims for damages outside of a contract, an absolute limitation period of 20 years applies from the date on which the damaging act or the basis for liability ceased, cf. the Limitation Act, Section 9, No. 2. This means that even if the creditor was not aware of the damage or the person responsible, the claim cannot be brought after 20 years. There are exceptions for personal injuries under certain circumstances, where no absolute limitation period applies.

How to avoid the claim becoming time-barred?

If you want to make sure you don't lose your right to your money, you can interrupt the statute of limitations. This can be done in two ways:

  1. Collect the money in an official way
    • Send a payment reminder or dunning letter
    • Hire a debt collection agency
    • Take the case to the conciliation board or court
  2. That the debtor confirms that he or she owes you money
    • Pays part of the claim
    • Written or verbal confirmation that the debt still exists

If the limitation period is interrupted, a new period starts to run from that point.

It is a good idea to know the statute of limitations

Being aware of the statute of limitations is crucial for both creditors and debtors. For the creditor, it ensures that necessary steps are taken to collect claims before they become time-barred. For the debtor, it can mean avoiding paying claims that are no longer valid.

We understand that the rules surrounding statutes of limitations can be complex. If you are unsure about what applies to your situation, it may be a good idea to speak to a lawyer experienced in monetary claims law .

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