It has been a common practice in the insurance industry for insurers and claims management companies to make a profit from selling personal injury claims to firms of solicitors who will then attempt to get the injured person compensation. The most alarming fact is that the sold prices do not make their way to the injured party in any shape or form. One law firm has decided to address the practice head on, and to that end, Simpson Millar LLP has introduced a new scheme where the firm will offer to buy the claim from the injured person directly- cutting out the intermediary.
Personal injury solicitors have been buying the victims' claims details from claims management companies for an uncomfortably long time and Simpson Millar LLP are tipping the balance in the favor of the victim whose interests come first, as opposed to providing a financial benefit as a result of their misfortune.
It is a real concern as personal injury solicitors are trying to outbid each other for the opportunity to run these claims and the ensuing price war has dramatically increased the cost of referral fees to benefit claims management companies. The end result being that the claimant loses out on good legal service as many law firms are forced to place less experienced lawyers in charge of handling personal injury claims to make financial ends meet.
Simpson Millar LLP's scheme really does cut out the middle man and as an alternative to paying a company for a claimant's accident claim; the solicitor will pay the injured person directly. In addition to addressing the current worrying trend, the firm acts on a "no win no fee" basis and guarantees that the injured party keeps the entire compensation awarded. Furthermore, it will not be deducted from any compensation received later on and individuals will not have to pay it back if they lose the case.
Ultimately it is the injured client who has to come first, the time spent outbidding other solicitors for referral fees could instead be spent settling a case and so make a better use of resources.
Christian is an author of several articles pertaining to No Win No Fee, Compensation Claims, Personal Injury and other legal articles.