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Changes to Personal Injury Claims

2013 has brought some major changes in Personal Injury law. So what are these changes and what does this mean for you, the client?

The vast majority of law firms deal with personal injury matters under a ‘no win no fee’ agreement, meaning if your claim is unsuccessful there are no costs for you to pay. If you lose your claim you are required to pay the costs incurred by the party to who you took action against (“the opponent”).

Law firms used to be able to recover a success fee from the opponent to cover the risk of acting on a ‘no win no fee’ basis, but this has been abolished and in July 2013 fixed fees were introduced for the majority of personal injury work limiting the fees for law firms taking claims forward, no matter how complex.

In order to protect you from the risk of losing your claim, law firms will enter into an insurance policy to cover you. Under the changes, the cost of the insurance premium is no longer recoverable from the opponent if you win.

Successful claims with a damages award of up to £25,000 can now have 25% deducted to cover the cost of any insurance premium and a success fee, both of which were previously paid for by the unsuccessful party.

The government’s aim with these changes is to make the process quicker, easier, more efficient and cost effective, but the reality for you is that you only receive a proportion of your damages rather than the 100% you would have previously been entitled to.

Call us now for a no obligation chat about how we can help you and to discuss the options available to you on 023 8064 4822,

Posted in: Civil Litigation

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