No win no fee advertising bears brunt of criticism in Lord Young’s report
Lord Young has called for curbs on “no win no fee” adverts by claims farmers and advocated a simplified claims procedure for small claims in his report on health and safety law.
Both insurers and claimant personal injury lawyers have said they support the recommendation for stricter controls on the volume and content of adverts.
Nick Starling, the ABI’s Director of General Insurance and Health, says: “We are very pleased that the report recommends a crackdown on irresponsible claims management firms.
“Not only do they help fuel public belief that behind every accident there should be a claim, but they add costs to the legal system, that ultimately are borne by all insurance customers.”
The report, Common Sense, Common Safety, published last week, recommends a simplified procedure for personal injury claims similar to the existing Road Traffic Accident Personal Injury Scheme, whereby claims for under £10,000 are dealt with on a fixed-cost basis. The limit for claims eligible for that scheme should be extended from £10,000 to £25,000.
Referral fees paid by solicitors to claims companies should be banned, and success fees should cease to be recoverable from the losing party in litigation, as previously recommended by Lord Justice Jackson, it says. There should be risk assessment exemptions for the self-employed who work in low hazard businesses and for employers where employees work from home.
However, Muiris Lyons, president of the Association of Personal Injury Lawyers (Apil), says: “What is needed is education so people understand that they cannot be sued for any old accident, but that everyone has a responsibility to avoid the negligence which leads to needless injury which can shatter people’s lives.
“Lord Young’s recommendations about advertising in personal injury will help with this, but they do not go nearly far enough. He also makes the classic error of believing a low value claim is simple when, in fact, that is often far from the truth, especially in workplace and medical claims.”
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