Insurers Profit From Road Accident Injury Claim Referrals but There is an Alternative Route to Obtaining Legal Advice Argues One Compensation Law Firm

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Winston Solicitors LLP a Leeds based law practice who provide specialist No win No fee advice to accident victims in the UK, support the views of Jack Straw who this week criticised insurers allegedly profiting from selling on policyholder details to call centre based claim companies.

Fortunately the internet provides many opportunities to obtain specialist advice directly from regulated law firms

The issue of No win No fee claims is currently a hot topic as the former Justice Secretary Jack Straw has called on the government to take action against the practice of referral fees whereby insurance companies sell details of customers who have been involved in an accident onto lawyers or call centre based claim companies in return for a fee. These firms then contact the person involved in the accident offering their services. It is claimed that some insurance companies are selling details of their own clients to some no win, no fee lawyers for as much as £1,000 per person and that data protection laws are allegedly being breached.

Recent industry research viewed by Winston Solicitors LLP suggests that whilst the numbers of road accidents involving serious personal injury have fallen since the mid-1990s, the cost of personal injury claims has doubled in the past decade, from £7bn to £14bn while the cost of motor insurance premiums has increased by at least 30% in the past year. Insurers believe that the sharp premium increases are necessary to fund the soaring injury claims costs. They blame the compensation culture fuelled by lawyers and the No win No fee system.

This weeks intervention by Jack Straw is interesting because it reveals the huge inconsistency that goes to the very core of the insurance industry. His comments have confirmed what many in the industry have known for some time: that insurers themselves are not only contributing to the growth in personal injury cases but they are also profiting from promotion of such claims.

Winston Solicitors believe that the controversy over referral fees makes it even more imperative that those involved in a road traffic accident seek independent legal advice themselves.

Martin Nolan, a partner at Winston Solicitors LLP added “Fortunately the internet provides many opportunities to obtain specialist advice directly from regulated law firms. Winston Solicitors LLP firmly supports the view that injured accident victims should have access to legal advice and have the freedom to choose their own representative. They should not be on the receiving end of marketing arrangements which they have no knowledge of and have to then deal with approaches from legal firms that they have not themselves invited”

For more information about road accident claims and the services offered by Winston Solicitors LLP please contact Martin Nolan on 0113 320 5000.

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Martin Nolan

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