September 17th, 2009
Some insurers are deliberately settling car accident injury claims before victims get a chance to contact a Solicitor and injured people are getting lower payouts as a result, this is according to the Law Society.
The Law Society said insurance companies are intentionally reducing how much compensation an injured party could receive by contacting people involved in accidents with their customers directly and trying to settle any claims quickly, before a solicitor gets involved.
A spokesman for the Law Society said determining the full extent of injuries and the amount of compensation due requires expert medical advice and will take more than a couple of weeks.
The Association of British Insurers has rejected the criticism.
The practice, termed “third party capture”, happens when the person who caused the car accident gives their own insurance company details of who else was involved.
The insurance company then use the details to contact other people injured in the crash, sometimes just hours afterwards, and offer to deal with all personal injury claims and vehicle repairs without involving lawyers.
The practice is believed to be depriving innocent victims out of millions of pounds in injury claims payouts.
The Law Society believe some insurance companies are involved in this bad practice.
The spokesman went onto say “Victims are being discouraged from taking medical advice, they are being actively discouraged from seeking legal advice.”
A representative from the Association of British Insurers defended the criticism, saying that ”Insurers may contact the innocent party to offer help with any claims direct.”
“Independent research has shown that claimants do not need legal representation to get fair compensation, and that legal advice does not lead to higher pay outs.
“Nevertheless insurers should always advise claimants that they have the right to seek legal advice.”
However, the Law Society’s stance has been backed by the Consumer Council.
“Any insurance company that actively discourages consumers from getting legal advice is behaving unfairly and should be stopped,” said a spokesperson from the Consumer Council.
“Consumers involved in accidents may be vulnerable because they are still recovering, or they don’t feel confident enough to insist on their rights because English may not be their first language or they are unfamiliar with the legal system.”
