The compensation culture is about to be shot down. Deregulation of marketing for the legal profession has resulted in shark-infested waters with everyone out to make as much money as possible from compensation claims, but things are about to change.
The Lord Young review started the ball rolling with the law changing so that the current feeding frenzy when someone cuts a finger in the workplace will no longer be the first option.
Currently the ‘no win, no fee’ offer offers injured people a means of getting compensation for theor injuries, but ‘no fee’ is not strictly accurate. There are fees (even lawyers have to eat), but they are piled onto the ‘costs’ in court. If your lawyer wins, the other side pay all the costs. When you enter into one of these agreements, you’ll be asked to buy (yes, there are fees, just not for the case itself) an insurance policy to cover the costs should your lawyer lose the case.
The thin end of the wedge where the law will change affects road traffic accidents, but the same principle will apply to workplace accidents and personal injury claims.
Solicitors won’t be able to offer legal aid for their clients as the legal aid budgets are being cut too. This means that whilst the number of claims will go down, legal fees overall are likely to rise – putting the option to make a claim beyond many people.
Our legal associates at Warner Goodman commented: “The government stopped legal aid and allowed No Win No Fee instead, but then the insurers were hit with success fees from the legal profession (given the risks we take) and the insurers passed on the costs to the punters. Meanwhile the claimant’s insurers wanted a slice of the action so required referral fees, (then so do garages and dodgy geezers in shades!) So the Government will now stop referral fees which lawyers never wanted in the first place!”
Fortunately, Risk and Safety Plus and Warner Goodman have put together a peace of mind package. This takes care of the costs if your company is the subject of a prosecution – providing, of course, you’ve followed our advice!