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Ministry of Justice Announces Delay to Compensation Claims Reforms


More uncertainty has been caused in the legal profession lately by the delays to the announcement of the Government’s proposals for reforming the Personal Injury Claims process. The announcement, which had been expected at the end of March, was originally pushed back to the middle of April, and it is now looking likely that it will not be made until the end of April or early May.

The delays are believed to have been caused by the intense negotiations between insurance companies, trade unions and solicitors. All parties have been accusing each other of using propaganda to sway the argument in their favour. The reforms are expected to be toned down following input from the Unions and they may initially only apply to motor accident claims.

Possible End to No-Win No-Fee conditional Fee Agreements

Whilst the reforms are of much interest to lawyers and insurers, their impacts will be felt by people wishing to make a claim. If the proposals go ahead, it could mean the end to No-Win No-Fee conditional fee agreements as the insurance policies designed to pay for legal costs in unsuccessful claims look set to be severely restricted. Removing this method of paying for solicitors’ fees will make it much less likely that people involved in road traffic accidents that have a moderate chance of success will access to the legal representation needed to make a successful claim. It could also mean that law firms are much less willing to take on cases where there are disputes over who was responsible for causing the accident.

Camps Solicitors opposes any moves to make it harder for people injured in accidents on the road or elsewhere to claim the compensation they deserve. Restricting After-The-Event insurance cover will leave some claimants having to pay for a solicitor to take on their case, discouraging genuinely injured people from claiming as well as reducing the amount of their compensation.



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