Motor Insurance Companies and the Compensation Culture Paradox

You will discover more people in the UK making compensation promises following automobile accidents than ever before. Many imagine the surge in reported claims is caused by the “compensation culture” it is allegedly taking hold in britain. autositescatalog

In genuine fact, recent studies have suggested that there are in fact less standard injury claims being made now than was your case in the 12 months 2000. In several legal groups (such as employers liability) the number of says are declining and reimbursement awards are stagnating. Normally the one area that bucks stylish is the road car accident sector and more specifically whiplash claims It is now very common for innocent victims of street crashes to make a claim for any personal injury they have sustained due to legal cover that has become readily available with most motor insurance guidelines. It is extremely easy for folks to make a claim pursuing their accident. In times gone by the wounded party would have acquired to go buying a lawyer, but nowadays, the attorney tends

to find the client having been advised to do so by the motor insurer.

There is also a huge paradox within the industry that most affiliate of people are unaware of. Insurance companies themselves actually generate more than 80 percent of all road crash injury claims, through their legal expenses insurance affiliate mechanism.

The legal industry, particularly solicitors, receive a very bad press in conditions showing how they provoke and nurture the compensation culture. Via redressing this imbalance, it is vital that the general public are made aware of how a legal expenses insurance system operated by EVERY insurance firms in the UK actually works.

If a policyholder pays for legal expenses insurance, they have direct access to -panel solicitors handpicked by the company. If the policyholder has a accident and is injured, then your insurers will frontward any non fault lay claim to their chosen lawyers in order for an injury case to be pursued. At this point, before a solicitor can take the case forwards, many will pay the insurers any referral charge, which can run into hundreds of pounds. The injured claimant is made mindful of the payment in the solicitors initial messages (to comply with attorney regulations). It will be fair to say that insurance agencies make many hundreds of hundreds of pounds worth of profit because of this of this arrangement.

Considering that the vast majority of all the motor insurance personal injury claims and made by such a system, it is very challenging to look sympathetically on the sector when they protest about the burgeoning charge of compensation claims. Essentially, the insurers have found a method to make a considerable amount of top series profit but ironically to do so create a huge number of reimbursement claims that might not have actually been made in the first place. The cost to the insurance industry far exceeds the benefits associated with recouping a referral cost on this basis, but the practice is widespread and well entrenched within the motor unit sector.

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