Sunday, November 20, 2011
attempts to stop the "selfish political merry-go-round 'driven by the motor vehicle accident claims is unlikely to be effective
The remission rate merry-go-round suddenly paralyzed. This, at least, it is the intention of the Department of Justice, which last week bowed to calls from the Lord Justice Jackson and Jack Straw announced a ban on referral fees in personal injury cases .
When accidents lead to legal action for damages to the victim usually finds its way to a lawyer through an intermediary, often a claims management company (CMC) or insurer receiving a generous share of the introduction. Speaking to the House of Commons this week, accused Straw CMC, counsel for personal injury, business and rental companies credit repair and restoration of building "a lucrative business and interested merry-go-round in which the personal information of anyone involved in a collision with another vehicle, no matter how trivial its impact, is marketed as a product, so typically £ 600 to £ 800 per hit, in order to make a claim - any claim - a condition that brings great benefits to everyone involved in this industry " insurance also did not spare the delivery of the blame for the growth of the industry claims (if a given industry by the legs of the Access to Justice Labour Law, 1999). Despite his active campaign against the benchmark, several insurance companies in fact, they are also working on the principle that if you can not beat them, you might as well join them. The government had been putting off a decision until the investigation into the legal aid tariff reference of the board. This concluded in May that there was no case for regulation of a general prohibition, calls for greater transparency in place, but remains open to the arguments of public sector-specific ban. Found was much more nuanced than has been reported, and does not reflect well on the Attorney General, Ken Clarke, just to announce that he had rejected the advice of the Board.Rather Clarke was generous in his praise of Mr Straw's campaign led to a decision -. And no doubt the high visibility of the intervention in June appeared to change the mood of the government previously relaxed on the subject
- There are strong arguments on both sides of the reference rate would increase the costs and foster a culture of compensation include, on the other hand, have access to justice and to represent a business practice not uncommon, in fact just another form of marketing. In addition, the "no win, no fee" system means that there is no benefit for lawyers in the claims management Duff -. Unless insurers to take a commercial decision to pay instead of spending time and money defending
- But good and bad, it's a policy that is likely to be much more effective in ending the news that the reference rates. First, the government admits that there is no accepted definition of a referral fee. Now that I, as a lawyer, decided to outsource my marketing activity to another person, and pay to bring in customers, which should be banned? This is an argument difficult to sustain in a free market and shows how difficult it is to capture the different types of agreements that may be considered (and were before the reference rates were allowed in 2004). CMC
Speaking on the Today Show last week, the Justice Minister Jonathan Djanogly suggested that the ban, along with other reforms currently before Parliament Jackson of the sentence and legal assistance Bill punishment of offenders, says the pest stops and the appellants. But there is nothing here that is not directly attack the reforms the business model demands of the industry, probably in hopes that they will be expelled (which is an industry worth almost £ 600m, though). In fact, earlier this year Straw expressed his regret that companies ban when he was Secretary of Justice.
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