Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 17th of July 2018
October 27, 2010

Minister signals change to personal injury lawyers’ fees

by Gill Montia

Story link: Minister signals change to personal injury lawyers’ fees

Justice Secretary, Ken Clarke, has indicated that lawyers in England and Wales may be prevented from raising the bar on their fees when successful in no-win-no-fee personal injury cases.

Lawyers working on a no-win-no-fee basis are currently able to double their fees in cases they win.

However, speaking on BBC Radio 4’s Law in Action programme earlier this week, the minister revealed that the Government is considering a system similar to that in the US, whereby some legal fees are recovered from damages awarded to the plaintiff.

Lord Justice Jackson published a review of the current system earlier this year, which according to Mr Clarke contained recommendations that the Government finds “very attractive”.

The rise in so called “ambulance-chasing” lawyers in the UK has impacted heavily on the insurance industry.

Recent research from Towers Watson indicates that the UK personal motor market will remain unprofitable until at least 2015, partly as a result of a “huge rise” in third-party bodily injury claims resulting from more claimants per claim and a more aggressive claims management industry.

 

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