Inter Law – Personal injury lawyers hit back at greed claims

Personal injury lawyers hit back at greed claims – 31/03/2017The Association of Personal Injury Lawyers (APIL) has hit out at recent accusations that legal costs are spiralling out of control.

It comes amid claims from the Association of British Insurers (ABI) that for every ВЈ1 paid in compensation to claimants, an additional 43p is paid in legal costs, or 43 per cent. The percentage is even more significant in cases worth less than ВЈ5,000 with lawyers receiving 88p for every ВЈ1 paid out on road traffic accidents.

The report, ‘Adding Insult to Injury: the Need for Reform of the Personal Injury Compensation System’, believes that insurance costs are being driven up as a result and also accuses claimant lawyers of deliberately delaying defendant insurers of claims to increase their costs.

APIL Chief Executive Denis Kitchener said: “legal costs have remained flat at 30 per cent for the past five years, throwing the blame for rising costs at claimant lawyers isn’t helping anyone.

We need to look at the entire system.”

The Ministry of Justice is expected to announce new rules governing the personal injury sector soon. The rules are expected to curtail the time lawyers get to notify insurers of claims and slash how long it takes insurers to investigate liability, this will hopefully act to curb future cost increases.

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