Personal Injury Compensation Culture. What is Britain Doing about it?

Compensation claims in the UK for personal injury have been rising over the last few years and it seems like now is the time to tackle it. There is an increase in pressure on the government to take action as the compensation culture is getting out of hand.

Since the early 2000 the number of accident and injury compensation claims has been rising. Law firms such as the National Accident Helpline are one example of a “no win no fee” structure that have been mainly to blame in this rise in compensation claims, as these firms are taking on cases at no risk to the client as they only charge fees if they win.

There has also been an increase in fraudulent injury claims. Often gang’s of organised criminals orchestrate an accident intentionally to gain compensation. However many claims by ordinary people are exaggerated to get more money than they deserve.

The MP, Jonathan Djanogly who is the Justice Minister is going about tackling the compensation culture problem. One of the major causes for this culture is down to the high referral fees offered for cases. The proposals that are currently being put through parliament should ban these referral fees and put a cap on the amount chargeable for success fees. If these measures are successful it should reduce the amount of compensation claims that are made.

There are 3 main groups that would benefit from the reduction of the compensation culture. Firstly the insurance industry would benefit, as it would mean a reduction in costs, as they have to pay out less. Also the consumer would benefit from reduced insurance premiums as this year an average of 40% increase in premiums has been put down to the an increase in injury claims. Accident victims would also benefit, as they wouldn’t be hassled by calls, texts and emails from claims companies.
 

Read more all about the Personal Injury Compensation Claim culture.