“No win no fee” reforms are not enough
A local insurance broker is calling on the government to do more to reform the ‘no win no fee’ legal system.
Despite expressing plans to ban lawyers from buying data on drivers involved, the director of Henderson Insurance Jonathan Willett believes that this will not completely prevent soaring motor insurance costs.
referral fee payments are routinely made to secure drivers details from insurance companies and claims management firms, and allow lawyers to contact drivers to encourage ‘no win no fee’ claims. this then allows solicitors to claim their feels back from the defendant or the insurer.
the industry is worth around £3 billion annually, and in most cases are paid by insurance policies but often results in higher premiums for policy holders.
Even if this practice becomes illegal, Mr Willet believes that the culture is so ingrained in society that it will continue to impact on premiums.
he commented: No-one would want to prevent people who have a genuine case from making a claim. However, the ‘no win no fee’ system encourages people who have been involved in a minor accident or incident to take a punt at trying to win some compensation.
“The losers under this system are all those, including companies, when it comes to motor insurance policies as the premiums are higher as a result.”
This was posted in Bdaily's Members' News section by Ruth Mitchell .
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