No Win No Fee Claims: More trouble Than They Are Worth?

‘Compensation Culture’ is a term often banded around in the insurance and legal sectors, but the increasing use of personal injury solicitors and their enticing ‘No Win No Fee’ schemes may be impacting these sectors in a far more negative light than we would expect.

The picture is not all doom and gloom however, despite an increase the number of literal ‘door knockers’ trying to scavenge business, the initial ethos behind ‘No Win No Fee’ is still as relevant as when the idea was encouraged in 1995.

In a ‘no win, no fee’ agreement your solicitor will only be paid if the claim is successful. He or she will also be entitled to an extra fee (known as a success fee). Both the basic fee and this extra fee are normally paid in whole or part by the losing party.

The main problem is that this potentially useful means of making claims after an accident, is in danger of being even more abused than it currently is. In particular, it is the fault of some claims firms which lead people to believe they can claim compensation simply because they suffer an injury. The ‘have a go’ mindset adopted by such firms has had a detrimental effect. For example, clients have been pushed into pursuing claims. In such cases, perhaps these clients had not fully understood what they were signing and perhaps in the past there have been occasions where individuals have been encouraged to pursue claims against their own interests.

However this should not cloud the fact that the scheme has brought about much more peace of mind for consumers. Particularly, client services have been developed since the proliferation of ‘No Win No Fee’. The vast majority of lawyers can now obtain loans for their clients to cover costs, for example medical reports and even the cost of insurance to protect the client from the risk of losing. With the current insurance schemes available genuine no win no fee arrangements can be provided. With the right case, the right lawyer and the right insurer the client can have true access to justice without the worry that should they lose their case they will have to sell their assets in order to pay their opponents costs.

Consumers should not be frightened of no win no fee agreements, as the legal and insurance professions realised quickly just how much harm adverse news stories about the agreements can do to a consumer weighting up their options after an accident. Many admirable organisations such as the Association of Personal Injury Lawyers(APIL), Accident Line and Injury Lawyers for You(IL4U) can now advise on whether a case truly has merit, as many of the less professional proponents of the scheme have often raised a clients hopes only to then dash them. Organisations like this ensure that clients’ interests are put first and that fanciful claims are not put first but only the legitimate ones.

Saurav is an author of several articles pertaining to No Win No Fee, Compensation Claims, Personal Injury Claims and other legal articles.