Bully-boy tactics could impact on genuine claims, fear specialists

Recent reports of 'bully-boy' tactics by some insurance companies for accident victims to settle claims quickly are causing concern amongst specialist solicitors fighting for the rights of genuine claimants.

The Association of Personal Injury Lawyers (APIL) have expressed deep concern over the reports that insurance companies are employing 'high pressure tactics' to persuade claimants to settle for less compensation than they are entitled to receive. What concerns the Association most, however, is how the Financial Services Authority is, in their opinion, turning a blind eye to the practice.

"It's a worrying trend that needs to be investigated as quickly as possible if we're not all to face a public backlash over how claims are dealt with," states Nicholas Jervis, Solicitor (non-practising) and managing director of claims specialist firm 1stClaims. "It only takes one incident to damage the reputation of the entire industry in the eyes of the public, and what is worse is that it appears that the regulatory bodies don't seem to be taking this situation seriously," he continues.

The problem has been thrown into sharp relief after one particular case where a woman involved in an accident was immediately offered £1,000 by an insurance firm if she would settle the claim without legal advice. This offer was later raised to £1,700, but the woman declined and decided to take legal instruction from a specialist claims firm. Her final settlement was more than 1,000% greater than the first offer and also covered her legal expenses.

"Bully-boy tactics like the ones faced by this woman are effectively cheating people out of compensation that they are legally and morally entitled to," explains Nicholas. "The worrying part of this is that these are not isolated cases and we are seeing more people coming to us after being subjected to high pressure tactics to settle for far less than they're entitled to. It angers me that these victims are basically being harassed at a time when they are already vulnerable by people who should be looking after their interests, not forcing their arm up their back and getting them to sign on the dotted line," he adds.

The worries over this particular problem are just the tip of the iceberg, according to the APIL. In an address to the annual APIL dinner in London, Amanda Stevens, President of the association also expressed concerns over what she sees as failings in the Criminal Injuries Compensation Scheme and the problems those who have accidents at work have in trying to trace their employers' insurers. She pointed to the lack of a comprehensive database of insurance policies, currently only available for motor insurance policies.

"Amanda's concerns are ones that we all feel are not being addressed by current government policy," agrees Nicholas Jervis. "The legislative minefield that both victims and claims experts have to pick their way through seem almost designed to make it more difficult to claim rightful compensation in the event of an accident, and not, as it should be, easier," he adds.

By highlighting failings within the current format, Nicholas and others like him hope that the fundamental changes needed will be implemented, legislation tightened up to prevent strong-arm tactics and the overall image of compensation claims can be given its rightful gravitas. "If we can start to put our own house in order, we can ensure that people aren't having to wait inordinate amounts of time to receive settlements and the compensation they rightfully deserve," he says.

"I'm proud to be involved in an industry that puts people first, but as good as the industry is, it can always benefit from improvements. By bringing to light the weak links, I'm certain that we can strengthen the chain and turn it into one of the most transparent, open and effective financial systems. That should be the aim of everyone involved," he concludes.