Failure to Ban Referral Fees in New Justice Bill Will Undermine Reforms
Leading personal injury lawyer slams continued failure to address perverse commercial incentives at the root of Personal Injury market dysfunction
Referral fees have been saved from the chopping block in the Government's new Justice Bill, unveiled 21st June 2011. Unfortunately, this botched approach will undermine the aim to reform civil justice in the United Kingdom.
Consumers are generally unaware that most insurers and claims management companies make a substantial amount of money out of the personal injury system by charging 'referral fees' - where an accident victim's case is sold to a solicitor for hundreds of pounds.
Instead of addressing these perverse commercial incentives, the Justice Bill unveiled 21st June 2011 represents the latest example of continued failure to tackle the critical and fundamental issue of referral fees, the controversial charges paid by solicitors to insurers and others for obtaining personal injury cases. This repeated inaction comes despite the clarion call for a ban by Lord Justice Jackson in his recent review of Civil Justice costs in the United Kingdom.
Instead of seizing the opportunity to tackle one of the most glaring deficiencies in the personal injury market, the Government has instead demonstrated a total disregard for the groundswell of calls to tackle the issue of referral fees. This is a profoundly disappointing choice which I believe undermines the entire aim of proper civil justice reform.
Referral fees damage the personal injury system by creating a myriad of perverse commercial incentives which threaten access to justice and cost consumers dearly by pushing up motor insurance premiums to unsustainable levels.
By skirting the issue of referral fees, we are now all left with rushed through, half baked legislation which does not implement the transparency, regulation and outright ban of referral fees which the system needs.
It is my profound hope that the industry will pull together and fill the leadership vacuum sadly left by the Government by challenging the deeply entrenched commercial interests which add no value to claimants, damage access to justice, and present a bad and costly deal to consumers.
A qualified solicitor since 1985, John Spencer is a leading authority in the accident compensation marketplace and is a steadfast advocate for protection of claimants. He has served as the Chairman of the Motor Accident Solicitors Society (MASS) and as part of the Transport Committee investigation into motor insurance costs, John provided testimony and evidence on 9th November 2010.
For more information visit http://www.cs2Lawyers.com
Referral fees have been saved from the chopping block in the Government's new Justice Bill, unveiled 21st June 2011. Unfortunately, this botched approach will undermine the aim to reform civil justice in the United Kingdom.
Consumers are generally unaware that most insurers and claims management companies make a substantial amount of money out of the personal injury system by charging 'referral fees' - where an accident victim's case is sold to a solicitor for hundreds of pounds.
Instead of addressing these perverse commercial incentives, the Justice Bill unveiled 21st June 2011 represents the latest example of continued failure to tackle the critical and fundamental issue of referral fees, the controversial charges paid by solicitors to insurers and others for obtaining personal injury cases. This repeated inaction comes despite the clarion call for a ban by Lord Justice Jackson in his recent review of Civil Justice costs in the United Kingdom.
Instead of seizing the opportunity to tackle one of the most glaring deficiencies in the personal injury market, the Government has instead demonstrated a total disregard for the groundswell of calls to tackle the issue of referral fees. This is a profoundly disappointing choice which I believe undermines the entire aim of proper civil justice reform.
Referral fees damage the personal injury system by creating a myriad of perverse commercial incentives which threaten access to justice and cost consumers dearly by pushing up motor insurance premiums to unsustainable levels.
By skirting the issue of referral fees, we are now all left with rushed through, half baked legislation which does not implement the transparency, regulation and outright ban of referral fees which the system needs.
It is my profound hope that the industry will pull together and fill the leadership vacuum sadly left by the Government by challenging the deeply entrenched commercial interests which add no value to claimants, damage access to justice, and present a bad and costly deal to consumers.
A qualified solicitor since 1985, John Spencer is a leading authority in the accident compensation marketplace and is a steadfast advocate for protection of claimants. He has served as the Chairman of the Motor Accident Solicitors Society (MASS) and as part of the Transport Committee investigation into motor insurance costs, John provided testimony and evidence on 9th November 2010.
For more information visit http://www.cs2Lawyers.com