Improving access to justice in Scotland, 28 March 2008

Legal Expenses Insurance Group

News Release : 28 March 2008

Improving access to justice in Scotland

In its response to the Consultation paper of the Scottish Civil Courts Review, the Legal Expenses Insurance Group (LEIG) has called for legal expenses insurance to be encouraged as a means of improving access to justice for personal injury claimants in Scotland.

Tony Baker, Director of the LEIG, commented:

It is important that consumers are provided with a choice which requires both before the event and after the event legal expenses policies to be available and actively encouraged and promoted. In this way costs are placed in the insurance sector and do not become an unnecessary burden on the state or on an individual.

LEIG notes that speculative fee agreements are available in Scotland and these are very similar to conditional fee agreements in England and Wales. However, a big difference is that if a claimant is successful in England and Wales the cost of the ATE premium should, under the Access to Justice Act 1999, be recoverable from the losing party. This is not the case in Scotland and, as a result, the market has developed differently and it is thought there is less consumer access to justice.

Tony Baker added:

In Scotland there is filtering out of all but the best cases with often only claims with an extremely good chance of winning taken up. This means many people remain uncompensated.

LEIG calls for after the event legal expenses premiums to be recoverable in Scotland. The Group considers that if this change was made there would be:

Greater and easier access to justice for some claimants. The private sector will responded to the new opportunities and help to ensure that genuine claimants, especially those on limited means, have improved access to the opportunity to receive fair compensation.

The development of an ATE market in Scotland with competition between providers and premium models developed to encourage more access to justice in a prudent and measured way.

-ENDS-

1.1 Enquiries to:

Tony Baker

Director, LEIG

Tel: 01920 465000

Email: thetonybakeratgmail.com

1.2 A copy of the LEIG representations is attached.

1.3 The Legal Expenses Insurance Group (LEIG) was formed in April 2006 by a number of leading legal expenses insurers and intermediaries. The full members are:

Albany Assistance Ltd

Angel Assistance Ltd

DAS Legal Expenses Insurance Company Ltd (80e Ltd and Amicus Legal Ltd)

LAMP Group Limited

MSL Legal Expenses Ltd

Red Sands Insurance (Europe) Ltd

F and I Solutions Ltd

ULR Norwich

1.4 Members represent in excess of eight million motor legal expense policyholders and over 16 million policyholders in general. It is estimated that members account for over half of the before the event (BTE) and after the event (ATE) legal expenses insurance market.

1.5 The aim of the Group is to work together to protect and advance the rights of claimants to justice and fair levels of compensation. Legal expenses insurance covers the legal costs involved in pursuing or defending a claim. Legal costs include the appointment of solicitors, barristers and expert witnesses.

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