"At last, the insurance industry’s so-called “dirty secret” is out. Insurers are wrongly suggesting that premiums go up because of the claims being made when in fact, they are the very organisations selling those claims at huge profits."
(PRWEB UK) 28 June 2011
Personal Injury lawyer Neil Hudgell has backed former justice secretary Jack Straw’s call for tighter rules on car insurance companies which sell on customers' details to personal injury lawyers without their permission.
Mr Straw, the Labour MP for Blackburn, said the practice was a 'racket' which pushed up insurance premiums as the costs of an increasing number of claims by no-win, no-fee firms were passed on to the motorist.
However, Neil Hudgell also stressed the importance of differentiating between “panel solicitors” who buy in leads and local personal injury firms like his which don’t pay referral fees from claims management companies, don’t bombard people with texts and personal calls and get their own leads by advertising or by recommendation.
Neil Hudgell said: “At last, the insurance industry’s so-called “dirty secret” is out. Insurers are wrongly suggesting that premiums go up because of the claims being made when in fact, they are the very organisations selling those claims at huge profits.
“I hope motorists will now be more aware that if they do need a lawyer after an accident they don’t have to use the firm put forward by their insurance company which has usually paid a referral fee to the insurers for the motorist’s details.
“People expect solicitors to be recommended for how good a job they’ll do – not how much money they’re willing to pay for personal information.”
Mr Straw said he had been prompted to investigate by a constituent who wanted to know how claims companies had obtained his personal details including his mobile phone number. Mr Straw said he went to see two major insurers who admitted selling customers' details.
Mr Hudgell agreed with Mr Straw’s recommendations that there should be tighter regulation of claims management companies and a total ban on the practice of charging so-called referral fees, which can cost up to £200 to £1,000 per case.
Neil Hudgell said: “Neil Hudgell Law only takes on cases where there appears to be a legitimate claim. Spurious and false claims waste everyone’s time and cost money – for the motorist and genuine personal injury solicitors.”