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Government to axe accident claims referral fees

The government is to ban referral fees in an attempt to curb accident claim and push down the costs of motor insurance.

Referral fees occur when a no-win, no-fee claim is transferred between claims management firms, insurance companies and lawyers.

If successful in these cases, a lawyer is able to claim back referral fees from the defendant or insurance company, which many believe have seen the cost of car insurance spiral out of control.

Justice Minister Jonathan Djanogly said the system is "pushing us into a compensation culture in which middle men make a tidy profit which the rest of us end up paying for through higher insurance premiums and higher prices".

He continued that "honest motorists" have seen a hike in their premiums due to this culture.

This follows figures from the Association of Chief Police Officers (ACPO), which found that the percentage of drink drivers has increased from last year, potentially increasing accident claims on the road.

Accident claims advice from Serious Law

Posted by T B Walters
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