Claim for injuries news

No win no fee compensation to end

Late in March 2011 it was announced that the no win no fee compensation claims system for injuries sustained in such incidents as work and car accidents will end, in an attempt to curb the strain being put upon those having to pay out after at-fault accidents.

It was reported at the time that institutions such as local authorities and the NHS had been forced to pay large sums in success fees as a result of the introduction of conditional fee agreements (CFAs) and this had put them under severe financial strain.

The proposed system for payment of car accident compensation claims for injuries would mean that personal injury lawyers' fees would be taken from the damages awards made to successful claimants, with a 25 per cent cap on that amount.

To offset the loss of no win no fee actions, damages payouts would increase by a proposed ten per cent.

Although some may bemoan the loss of CFAs, certain experts believe that, with the reduction in success fees for lawyers, everyone will benefit from a reduction in car insurance prices, which have increased to record levels reportedly as a result of the high number of personal injury cases, coupled with more money for public and private sector services due to savings being made on compensation claims for injuries.



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*Where replacement vehicle costs can be recovered from the insurance company of the person who caused the accident. Where this person is untraceable or uninsured, or where there is a dispute over liability, a replacement vehicle cannot be provided.