Countering the Compensation Culture

by Simon Robeson on October 16, 2014
Simon Robeson

Simon Robeson

The latest stages of the current programme of dampening down the compensation culture in Britain came into force on the 1st October this year.  Simon Robeson, a partner in the Litigation Department at Kidd Rapinet’s London office said, “the new rules still facilitate the making of genuine claims; they just make it harder for spurious claims to be made”.

The fees medical professionals can charge for preparing whiplash injury reports have now been fixed at £180, to reflect the time taken to carry out assessments and write them up.  Previously prices of up to £700 were being charged, leading to concerns that they could be used to generate profit.  The new fee is part of measures to drive down the amount being paid unnecessarily by insurance companies on fraudulent claims, which will enable them to pass on savings to honest customers.  Government reforms have been credited for leading to quoted motor insurance premiums falling.  Latest figures from the AA show a record fall of £120 in the past year.

Tough new rules set by the Claims Management Regulation unit at the Ministry of Justice have also come into effect which prevent regulated claims companies from submitting poor quality claims for compensation for mis-sold Payment Protection Insurance (PPI) and other products.  High volumes of badly compiled claims have caused delays to genuine applications being resolved.

Under the changes, claims firms have a duty to make sure the claims they are submitting have a realistic chance of success, as well as ensuring full evidence is provided to back up any allegations.  Firms will also have to carry out thorough audits of how data they use has been gathered, so they can no longer turn a blind eye to whether leads have been found by illegal marketing texts and calls.

Simon Robeson comments “The new rules are good for solicitors and good for their clients claiming compensation – and have the added knock-on benefit of reducing premiums for the rest of us”.

If you would like assistance with a claim for compensation, call Simon Robeson at Kidd Rapinet on 020 7265 5486 for further information.