Is it the end of personal injury claims farmers?

Question:

When Claims companies advertise on television asking whether you’ve had an injury in the last three years, do you know what difference using such a company will make to your claim from going direct to a solicitor?

Answer:

The simple answer is, no difference at all!

The Claims company will simply sell your claim on to a solicitor who is on their panel. This solicitor will have a contract with the Claims company that binds that solicitor to using a number of other services from which the Claims company will receive a commission. The solicitor will also have to pay the Claims company about £500 for each new case they receive.

This selling of claims is also carried on by most of the motor insurers, such that millions of pounds of revenue a year is received by the insurers who have been positively encouraging people to make claims (which, in itself, there is absolutely nothing wrong with in that it is a legal right) but then they blame the increase in insurance premiums on the level of claims that are being made.

The two main motoring organisations, the RAC and AA also sell claims through their insurance links.

The government are now proposing that referral fees be banned which on the face of it should see the end to Claims companies. It would mean that the public would instruct a solicitor directly, as they would have done in the past and would still get the same deal including no win no fee agreements and all their legal costs paid by the defendant in addition to their compensation.

It is, however, difficult to imagine that these companies, some of which are large organisations employing high profile celebrities to front their adverts will just pack up and go away. It seems far more likely that the fees will be dressed up in some other form and nothing will change. It will be for the government to ensure that any legislation they bring in is tight enough to make it effective, as, unless it is, they may as well leave things as they are.

What might be money better spent is increasing public awareness that they will get exactly the same deal if they go straight to a solicitor and that Claims companies are simply middlemen who add nothing whatsoever to the process.

For further information on this or any other personal injury / clinical negligence issue please contact David Greenhalgh on 01689 887806 or email david.greenhalgh@cwj.co.uk