In the face of growing criticism of no win no fee arrangements and rampant litigation, the government has issued the pledge that it will ‘get a grip’ on the so-called personal injury compensation culture that has been so pervasive throughout the country.
Remarking that the current situation regarding personal injury claims was ‘rotten,’ Justice minister Jonathan Djanogly said that action was needed to reduce costs and increase transparency. Critics were quick to say that insurers were receiving monetary kickbacks for giving personal details of those involved in traffic accident claims without first seeking permission to do so.
Labour MP Jack Straw has seen fit to put increasing pressure on the government to finally take some sort of action in regards to the scandalous nature of referring accident victims to claims companies, personal injury lawyers, or garages. Referring to such a practice as scandalous, Mr Straw has called for a general ban on referral fees.
Motor insurance costs have continued to spike lately, said the former Labour minister, even though the number of traffic accident claims in which personal injury has occurred has plummeted to record lows. Claiming that insurers were complicit in the practice of referring customers, Mr Straw said that many organisations such as some local police forces were also offering commercial information up for sale in order to expedite claims.
Mr Straw has also been critical of legal firms who use high-pressure tactics in their handling of personal injury claims. The Labour MP claims that one of his constituents was flooded by texts and calls urging him to file a personal injury compensation claim in the wake of an accident. The constituent was not only uninjured, but he had also not granted his permission to be contacted by anyone concerning the nature of his case.