WHO PAYS THE LEGAL COSTS IN MAKING A PERSONAL INJURY CLAIM?

November 5th, 2008 Hinchliffes

Published in Truckstop News – November 2008.

In this month’s issue Steven Hinchliffe of the specialist Personal Injury firm Hinchliffes Solicitors answers the question “WHO PAYS THE LEGAL COSTS IN MAKING A PERSONAL INJURY CLAIM?”.

Legal costs can be a major concern when considering whether to make an accident compensation claim. Contacting solicitors can appear daunting and potentially expensive. However, most specialist accident lawyers are very approachable, and able to set people’s minds at rest about the claims process and costs implications.

It has become normal practice for people making a personal injury compensation claim not to have to pay any legal costs, and to keep all the compensation if their claim is successful. To achieve this there needs to be some insurance cover, but more importantly the person making the claim must give their full co-operation.

This sounds too good to be true, but the following points should help explain how firms like mine can offer “No Win No Fee” claims.

How can it be a free service – who pays you if I lose?

You need to complete a Conditional Fee Agreement and if you do not already have legal expenses insurance cover, we will arrange some for you. If you lose, the insurance pays our expenses and, if appropriate, your opponent’s legal costs. We are not paid any fees at all.

What is a Conditional Fee Agreement?

It is a document confirming that we will act on your behalf in making an injury compensation claim, but accepting that we will only be paid our fees if your accident claim is successful.

If you lose, we will not receive any fees, but will be reimbursed by appropriate insurance cover any expenses that we have paid on your behalf (eg fees for medical records and reports). The insurance cover will also pay any legal costs awarded to your opponent.

If you win, our fees and expenses will be paid by your opponent or their insurers.

Do I need insurance – how much will it cost and do I have to pay?

We will check if you already have any legal expenses insurance cover that you can use for the claim. If not, we will arrange for a policy to be put in place, but the premium does not need to be paid until the claim concludes.

If you win, your opponent will pay the premium. If you lose, the premium is paid by the policy itself. Whatever the outcome, you will not have to pay the premium yourself.

Legal expenses insurance premiums vary depending on the type of claim and the degree of risk the insurers take in backing the claim. For an accident on the road we can obtain a premium of £367.50, and for other types of accidents the figure is likely to be around £899.

My insurers want me to use their solicitors – do I have to, or can I still use you?

Insurers often sell accident claims to their own panel solicitors, charging many hundreds of pounds for each case. Therefore they want you to use them and may try to suggest that you must do so, but this is not correct. They might also imply that only their solicitors can handle your claim properly, which is also wrong. Who you instruct is entirely your decision and you should not be bullied or misled.

Should I use a claims company instead of a solicitor?

Again, this is entirely your decision. These companies spend vast amounts of money on advertising and will sell your case to one of their panel solicitors, often for hundreds of pounds. They are not allowed to handle the claim themselves.

Some companies require you to take out a legal expenses insurance policy, paid for by a loan. If you win, the loan is repaid from your compensation. Also, some companies will take part of your compensation as a fee.

Before instructing anyone to handle your claim, whether a solicitor or a claims company, consider carefully the service being offered and whether it best suits your situation. Do not be afraid to go elsewhere.

QUESTIONS AND ANSWERS

I had a road accident claim when a car ran into the back of me. I reported this to my insurer and an hour later a solicitor called saying he was handling my injury claim. He said my insurer had appointed him and I had no choice in the matter. Is this right?

No, you are free to use whoever you wish. Insurance companies and their panel solicitors often use these bullying tactics to protect their financial arrangements. Worse still, some insurers actually tell people that the solicitor they wanted to use is either no good, will charge them a lot of money or will take part of their compensation, which is untrue.

I made a car accident claim for my injuries, and a few days after my solicitor wrote to the other driver I was visited by the other driver’s insurers. They wanted to give me a cheque there and then, and offered me £1,500. I was very tempted to accept, but called my solicitor first who said my claim was worth over £4,000! My claim was eventually settled for £4,500. Is this practice common?

Regrettably this practice is becoming more common with certain insurance companies, particularly in road accident claims. They offer far less than the claim is actually worth, especially if your injuries have not yet settled, and they often make negative comments about your solicitor as well. They want to buy your claim off cheaply and avoid paying any legal costs. I am glad you stood firm and spoke to your solicitor before reaching a decision you may have regretted.

ENDS

(Other Personal Injury FAQs)

PERSONAL INJURY CLAIM SOLICITORS:-

If you have suffered any form of accident or contracted an industrial disease contact personal injury specialists Hinchliffes Solicitors for immediate legal advice, to find out if you are entitled to make claims for injury compensation. All cases are conducted on a No Win – No Fee basis, where the Client keeps 100% of the compensation recovered.

Call now on 0800 138 1348 to speak direct to a personal injury lawyer or go to our Start Your Claim Now page to submit details of your personal injury claim online.