Personal injury claims soar despite fall in accidents

A sharp rise in the number of people making personal injury claims following a road accident has been revealed by insurance analysts.

A report from the Actuarial Profession reveals that despite an 11% fall in the number of road accidents in 2011, personal injury claims rose by 18%.

It says this may cost the insurance industry an extra £400m a year.

The government is planning new laws to limit the amount of money that firms can make from 'no win no fee' cases.

The legislation, announced in March 2011 by Justice Secretary Ken Clarke, would prevent lawyers claiming "success fees" from the losing side. Instead they would receive a share of the damages.

The proposals follow a review carried out by Lord Justice Jackson in 2010 at the request of the previous government.

The legislation also aims to prevent insurance companies and others from passing on motorists' details after an accident.

Read More - http://www.bbc.co.uk/news/uk-18700212

Preserving the essence of personal injury

The personal injury claims industry has come under extreme criticism in recent years, with the Prime Minister calling for significant change to the way lower value claims are processed. In particular, whiplash claims have been blamed for the widespread increase in vehicle insurance premiums.

The term ‘no win no fee’ has developed fairly negative connotations both inside and outside the legal profession. However, it’s important to note that the ethics behind such legal services are all about improving access to justice. If ‘no win no fee’ was taken away, the only people able to access the justice system would be people who can afford to fund litigation, or those with the appropriate legal insurance cover.

At the less reputable end of the legal industry, the tactics used to entice consumers to bring a claim, and the prevalence of in-your-face TV advertising, have contributed to the growing criticism of ‘no win no fee’ practitioners. It has also become more difficult for consumers to identify qualified practitioners that are genuinely on their side in seeking fair compensation for an injustice – nothing more and nothing less.

Read More - http://blogs.independent.co.uk/2012/05/31/preserving-the-essence-of-personal-injury/