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Injury claim referral service fees to get banned

The government is to prohibit referral service fees in personal injury claims so that they can restrain the “compensation culture”.

It states the present method through which personal injury information and facts are sold on by insurance firms to legal representatives has resulted in soaring insurance rates.

There’s no present timescale for applying a ban.

The government wants to end losing defendants paying out a “success fee” to compensate the claimant’s law firm for unconnected cases he or she may possibly have lost. It says the recommendations before Parliament imply individuals making the claim should pay for the success fee – which is to be capped – instead of the defendant.

Legal expenses over-all will drop meaning reduced charges to pass on to customers, it adds. The Association of British Insurers – which addresses on behalf of top insurance companies – said it welcomed the announcement. Read More