Evidence submitted by Andrew Twambley,
Director, injury4u.co.uk
1 Does the compensation culture exist ?
The myth of the compensation culture, fuelled
by the PR machines of the insurance industry, is real. It is that
myth that is just as powerful as the non reality of its existence.
Government figures have proved that it does not exist, but that
is not what the insurance industry and the popular press wish
the public to believe. The legend of King Arthur and The Knights
of the Roundtable was a myth.... but is still a powerful and popular
story 1,000 years later.
2 What has been the effect of the move to
"no win no fee" contingency fee arrangements?
This has provided access to justice to a greater
number of injured claimants. It has transferred risk away from
the parties and dropped it into the laps of the lawyers and insurers.
It has saved the government millions in Legal Aid payments and
has ensured lawyers don't get paid just for "turning up".
It has however lead to the "costs war" and masses of
satellite litigation which has clogged up the system. This has
now abated to a large extent and the courts can now pay more attention
to real issues. "No Win No Fee" has allowed the corruption
of the system by non regulated accident management companies.
It is hoped that future legislation will control the abuse and
exploitation practiced by the majority of these companies.
Contingency arrangements are a minor consideration,
which work in situations where there is no costs recovery.
3 Is the notion of a "compensation culture"
leading to unnecessary risk averseness in public bodies?
The answer must unfortunately be "yes".
The newspapers are full of anecdotal stories of claimants taking
action against public bodies. Premiums rise so public bodies do
all they can to stem the tide. Out of context risk management
decisions are fed to the media and the problem tends to spiral.
It is good to see that the judges have little sympathy for ridiculous
claims.
4 Should firms which refer people, manage
or advertise conditional fee agreements be subject to regulations?
Yes . . . heavily. Most of such organisations
prey upon the greedy and vulnerable. All unethical practices should
be outlawed and regulated out of existence.
5 Should any changes be made to the current
laws relating to negligence?
Case law is updating itself on a daily basis
and I do not think it necessary to change the law by statute.
The first part of The Compensation Bill is a vague attempt to
tinker with the law. I would be surprised if it survives the House
of Lords unscathed.
Andrew Twambley
Director
injury4u.co.uk
November 2005
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