The Accident Claim Company

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In a recently published report Lord Young of Graffham has compiled a report on the operation of health and safety laws and the growth of the so called “compensation culture”.

Here are some quotes from the full report:
Britain’s ‘compensation culture’ is fuelled by media stories about individuals receiving large compensation payouts for personal injury claims and by constant adverts in the media offering people non-refundable inducements and the promise of a handsome settlement if they claim. It places an unnecessary strain on businesses of all sizes, who fear litigation and are subjected to increasingly expensive insurance premiums.

The 2006 report concluded that problems lay in the public’s increased awareness that it was possible to sue without any financial risk.

Furthermore, many adverts entice potential claimants with promises of an instant cheque as a non-returnable bonus once their claim is accepted – a high pressure inducement to bring a claim if ever there was one.

However, in my view (Lord Young of Graffham) the regulations do not go far enough: they allow companies and personal injury lawyers to advertise in such a way that encourages individuals to believe that they can easily claim compensation for the most minor of incidents and even be financially rewarded once a claim is accepted.

I (Lord Young of Graffham) particularly feel that the system needs to go further and do more to control both the volume of advertising that such companies produce and also the content of these adverts. Indeed, advertising can be seen as one of the key factors in driving a fear of litigation.

It is fair to see from these comments that there is perception that the more advertising or inducements that are being made, the more there appears to be people claiming. The only flaw in this argument surely has to be that any business must be able to promote its own services like just any other business would do. Clamping down too heavily on advertising just because it is for personal injury is surely contrary to being in a democratic developed country where sales and marketing are common place tools for any kind of business. I agree that there are probably too many adverts for “No Win No Fee” and the marketplace is very overcrowded, but will this move to clamp down on advertising stifle business for many small independant solicitors firms, some of whom are already struggling to find enough work?

The Lord Young report also wants an extension of the Road Traffic Accident Personal Injury Scheme.

Quotes:

recommend extending the current Road Traffic Accident Personal Injury Scheme put in place by the Ministry of Justice to include other personal injury and lower value clinical negligence cases…..

recognise that the Road Traffic Accident Personal Injury Scheme will need some modification in procedures if it is to be extended to a wider range of compensation claims

Compensation culture recommendations
Introduce a simplified claims procedure for personal injury claims similar to that for road traffic accidents under £10,000 on a fixed costs basis. Explore the possibility of extending the framework of such a scheme to cover low value medical negligence claims.
Examine the option of extending the
upper limit for road traffic accident
personal injury claims to £25,000.

One thing is for sure is that the personal injury claim litigation business is set for more many changes over the coming months and years and lets all hope it is for the good of the innocent injured victims of negligence.

The full report/publication can be viewed at the http://www.cabinetoffice.gov.uk

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