New Claiming Compensation Rules Explained
It is oftentimes believed that no win no fee rules, subjected to a range of changes, offer a more rigid policy as for personal injury compensation. Unfortunately, the changes may seem really tough to comprehend, and a simple and brief explanation is something that people are typically looking for. Therefore, the article aims at providing guidance on how the new legislation is functioning.
In the past, an injury, suffered by an individual through the fault of his/her own., e.g. in a public place, enabled the injured party to claim for a full compensation in accordance with a No-Win No-Fee procedure. Therefore, the legislature implied paying an extra fee to a solicitor in case the claim was a success. Thus, a success must have been paid to a solicitor by the insurance company; while an injured party received the compensation to the full.
However, the Government has introduced a series of changes and the 100% compensation good times sank into oblivion. It was decided to limit a success fee and make it a part of the compensation paid by insurance enterprises. The changes provoked a reduction in the number of solicitor offers, caused by unwillingness to pick up the cases due to the potential risk of losing the total amount of the reward through various legal costs. Even taking into account the fact that a solicitor’s success fee may equal up to 25%, taking up the case is still a risky affair.
In its turn the Government motivates its action by a permanently increasing number of bogus accident claims, and taking into consideration their nature pursuing a claim was as easy as ABC. As a result, the move will provide insurance businesses with a windfall, as these establishments have their premiums collected and calculated already.