New Legal Expenses Insurance Group will protect and promote the rights of claimants , 01 June 2006
Legal Expenses Insurance Group
News Release : 01 June 2006
New Legal Expenses Insurance Group will protect and promote the rights of claimants
The Legal Expenses Insurance Group (LEIG) has been established by a number of leading legal expenses insurers and intermediaries. The Group will protect and advance the rights of claimants to justice and fair levels of compensation.
Director of the LEIG, Tony Baker, commented:
This is a very positive move from legal expenses insurers who annually represent and help millions of policyholders. The Group will be looking at legislative, trade body and regulatory proposals that are currently in discussion that concern issues of compensation. They will make sure that the interests of the injured party, the most important person in the process, are fully protected.
While some proposals under consideration can be commended, a number have the potential to impact adversely on claimants. The Group are determined to assist individuals to be compensated fairly for personal injuries or where they have lost out from someone elses actions or negligence.
LEIG will provide information and comment on these issues in order to protect the interests of consumers and legal expenses policyholders.
Proposals of importance that the Group is considering currently include:
The small claims limit for personal injury claims: Any increase from the current £1,000 limit would seriously prejudice the ability of claimants to pursue compensation claims and reduce the awards to most of those who do persevere. Many claimants would find themselves at the mercy of defendant insurers and reliant on them to deal fairly both in looking after the interests of their policyholders and those of claimants. This is a step too far.
Compensation Bill: The Bill contains many positive features, including regulation of claim management companies, but the details and implementation of this legislation requires very careful consideration.
The Legal Services Bill: This will open up the legal market to competition and allow total flexibility in the ownership of legal practices. There is much to commend in what is proposed but also potential dangers for example insurance companies choosing to own legal practices that are involved in cases where insurers are contesting liability or seeking to limit compensation.
The NHS Redress Bill: This is designed to reduce legal costs by taking cases out of the court system but does so by reducing the involvement of solicitors in clinical negligence cases. There is a lack of detail as to how this would operate and the danger that what emerges will make it more difficult for individuals to pursue compensation.
The Association of British Insurers (ABI) Care and Compensation proposals: ABI has proposed a reform of the personal injury sector and is suggesting that claimants should be expected to complete a new claim form for claims under £25,000. It is planned that they should not have legal advice in completing it. The basis of the proposals is that claimants would be treated fairly by liability insurers. As a lobbying body they may rightly be promoting the interests of liability insurers but this seems to be at the potential expense of people injured by the clients of liability insurers.
Recovery of after the event (ATE) insurance premiums: some judges seem to believe that only very modest, and possibly uniform, after the event (ATE) insurance premiums should be recoverable following successful compensation claims. This shows a lack of understanding of the issues and costs; the ATE market is dependent on the recovery of reasonable premiums in successful cases to meet the objectives of the Access to Justice Act 1999 and the withdrawal of legal aid for personal injury claims.
In addressing these issues LEIG will be preparing and distributing information, comment and discussion papers. The intention is to ensure that the rights of individuals for easy access to obtaining fair levels of compensation are not undermined.
The Group welcomes comments and contacts with other bodies including those with similar consumer objectives.
-ENDS -
Notes for Editors
1. The following companies have joined the LEIG:
Albany Assistance Ltd
Angel Assistance Limited
DAS Legal Expenses Insurance Company Ltd
FirstAssist Group Limited
LAMP Group Ltd
MSL Legal Expenses Ltd
ULR Norwich
It is estimated that members represent in excess of eight million motor legal expense policyholders and over 16 million policyholders in general.
2. Tony Baker has been appointed as Director of the LEIG tasked with setting up and establishing the Group. He is an independent consultant and non-executive director and a former Deputy Director General of the Association of British Insurers. His contact details are:
Tony Baker
Tel: 01920 465000
Mobile: 07725 462528
Email: thetonybaker@gmail.com
3. Website: www.leig.org
Issued by:
Martin Francis
Albion PR
AlbionPR@aol.com
020 8668 3074
Mobile: 07748 96 76 84
www.albionpr.co.uk
Albion International 8 Warren Road Purley CR8 1AA United Kingdom
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