"Compensation Culture" And the Genuine Claimants Who Suffer
Britain's so called 'compensation culture' - a cynical phrase that the hard working community of personal injury lawyers would rather do without - has returned.
Speaking in September this year, the government voiced its disapproval over the UK's compensation system which Justice minister Jonathan Djanogly called 'a racket.
' The 'racket' in question is the ban on referral fees from compensation claims which are sold on by insurance companies to lawyers.
This selling of personal details has been blamed for the hike in motor insurance premiums which have risen by 40% on average in a year and seen the cost of personal injury compensation claims double from £7bn to £14bn in the past year.
Worryingly, these figures come despite the number of road accidents involving personal injury falling by 31% in 2009 against the average for 1994-98.
This selling of personal data by insurers has shocked and angered both consumers and major insurers alike; consumers for the breach in protection of their personal data, but also reputable insurers who have been tarred with the same brush as firms who have acted illegitimately.
Yet, for consumers who have been involved in an accident which was not their fault, even those who are not genuinely injured, it comes as no surprise - many have found themselves hounded by illiberal compensation firms.
Nick Starling, Director of General Insurance and Health at the Association of British Insurers (ABI) - which speaks on behalf of leading insurers - approved the government announcement saying that referral fees were "a symptom of a dysfunctional compensation system".
Speaking after the government's announcement, Starling described injured consumers being 'pestered' to make personal injury claims via unsolicited texts - a situation insurers and consumers want to stop.
It seems that Starling and the government alike want to redress the monetary interest of insurance companies in compensation claims and shift to a genuine interest in the health and well being an injured client.
Both insurers and policy holders would rather avoid the associations with companies who pass on referrals in this way.
Indeed, many large insurance companies do not sell customer data, but rather put injured policyholders in touch with legal help.
The banning of referral fees is merely the first step in treating a 'sick' compensation culture.
Action also needs to be taken to reduce the amount of fraudulent compensation claims, particularly for whiplash for which 1,200 new claims are made every day.
Consumers are reminded that fraudulent claims are illegal and will be dealt with severely.
Referral fees, fraudulent claims and adverts which depict financial inducements for making a claim have all given compensation claims a bad name.
Hopes are that the referral ban will benefit genuine claimants, lower policy premiums for all involved and restore the reputation of compensation lawyers and firms.
Whatever the outcome, genuine claimants should not be dissuaded from applying for a compensation claim by seeking the independent advice of an experienced Personal Injury Firm, and not an illegitimate firm who has contacted you.
Speaking in September this year, the government voiced its disapproval over the UK's compensation system which Justice minister Jonathan Djanogly called 'a racket.
' The 'racket' in question is the ban on referral fees from compensation claims which are sold on by insurance companies to lawyers.
This selling of personal details has been blamed for the hike in motor insurance premiums which have risen by 40% on average in a year and seen the cost of personal injury compensation claims double from £7bn to £14bn in the past year.
Worryingly, these figures come despite the number of road accidents involving personal injury falling by 31% in 2009 against the average for 1994-98.
This selling of personal data by insurers has shocked and angered both consumers and major insurers alike; consumers for the breach in protection of their personal data, but also reputable insurers who have been tarred with the same brush as firms who have acted illegitimately.
Yet, for consumers who have been involved in an accident which was not their fault, even those who are not genuinely injured, it comes as no surprise - many have found themselves hounded by illiberal compensation firms.
Nick Starling, Director of General Insurance and Health at the Association of British Insurers (ABI) - which speaks on behalf of leading insurers - approved the government announcement saying that referral fees were "a symptom of a dysfunctional compensation system".
Speaking after the government's announcement, Starling described injured consumers being 'pestered' to make personal injury claims via unsolicited texts - a situation insurers and consumers want to stop.
It seems that Starling and the government alike want to redress the monetary interest of insurance companies in compensation claims and shift to a genuine interest in the health and well being an injured client.
Both insurers and policy holders would rather avoid the associations with companies who pass on referrals in this way.
Indeed, many large insurance companies do not sell customer data, but rather put injured policyholders in touch with legal help.
The banning of referral fees is merely the first step in treating a 'sick' compensation culture.
Action also needs to be taken to reduce the amount of fraudulent compensation claims, particularly for whiplash for which 1,200 new claims are made every day.
Consumers are reminded that fraudulent claims are illegal and will be dealt with severely.
Referral fees, fraudulent claims and adverts which depict financial inducements for making a claim have all given compensation claims a bad name.
Hopes are that the referral ban will benefit genuine claimants, lower policy premiums for all involved and restore the reputation of compensation lawyers and firms.
Whatever the outcome, genuine claimants should not be dissuaded from applying for a compensation claim by seeking the independent advice of an experienced Personal Injury Firm, and not an illegitimate firm who has contacted you.