The rise of claims management companies in recent years has been the topic of much controversy, yet contrary to appearances, the number of personal injury claims made each year in England and Wales has barely changed in the past decade, at around 730,000.
Most claims are made against the motor or employer liability insurance policies although if you have been injured in the course of a crime then you can make a claim to the Criminal Injuries Compensation Authority (www.cica.gov.uk). You may be able to claim two types of compensation, general damages and special damages. General damages are paid as compensation for an injury, for example, a payment for pain and suffering or loss of future earnings. Special damages are paid as compensation for actual financial loss caused by the accident up to the date of the hearing.
In addition to traditional law firms, there is a bewildering array of organisations that offer to handle claims for personal injury, although many of the claims handling companies which advertise on daytime TV still use independent law firms to handle the legal work and the process is much the same whoever is looking after your claim.
A doctor will be asked to provide a medical report gather evidence about the accident and injuries. For example, it may be useful to take photographs of the scene of an accident and of what caused the injury. You should also, if possible, write an account of the incident while details are still fresh in your mind. If there are witnesses, you should make a note of their names and addresses.
Your solicitor or claims handler will then negotiate with the insurance company to ensure a fair settlement. The vast majority of claims are settled out-of-court. Nevertheless, according to the Association of British Insurers (ABI), the average time to complete a motor injury claim is two years while injuries at work cases take an average of three years to conclude.
The biggest problem with personal injury claims in the past has been how to pay the legal fees and other costs associated with making your claim. Legal Aid is not available for personal injury cases; instead lawyers and claims handlers often work on a ‘no win, no fee’ basis, collecting a larger fee if you are successful. However, if you lose your claim, then you may liable for the legal and other costs of the insurance company. To protect claimants against this possibility, insurance policies are available, the premium for which will be paid by the other side if you win and will not be charged if you lose.
In theory, this means there is no risk for claimants, but in some cases, the losing side has refused to pay all of the insurance premium, meaning that part of the cost is taken from the compensation. However, most of the wrinkles with this system have now been ironed out and many claims handlers and law firms guarantee that you will not lose any of your compensation in this way.
Alternatively, some household insurance policies contain insurance for legal fees in these situations, as may some motoring organisations while trade unions often also fund personal injury claims for their members.
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