Road Accident Solicitors’ Concerns About Third Party Capture
Naturally, road accident solicitors and insurers don’t always see eye to eye. But there is one practice that they disagree on to such an extent that they cannot even agree on what to call it. Insurance companies will refer to is as third party assistance whilst road accident solicitors go with the more fear-inducing third party capture.
Regardless of its name it means the same thing: the practice of insurance companies contacting third parties with a claim against one of their policy holders in a bid to settle the claim. However, this contact always takes place very promptly, before legal advice has been sought. Some claimants even report being visited at home within hours of the incident.
Road accident solicitors have been concerned about the practice for years, saying that legal advice is vital. They also argue, convincingly, that an insurer offering to settle a claim faces a serious conflict of interest. It is surely not easy to offer fair payouts whilst trying to keep payouts as low as possible.
Despite the protestations of road accident solicitors, insurers state that the compensation paid out this way is no less than what is paid on the advice of a solicitor. They also state that dealing with payments this way is quicker. But it’s not such a good deal if the settlement is unfair, according to road accident solicitors.
Normally, actions such as third party assistance/capture would be governed by the stipulations of the 2006 Compensation Act which regulates claims management activities. However, insurers are already regulated by the Financial Services Authority.
In order to attempt to appease road accident solicitors and to legitimise the practice, the Association of British Insurers will soon be introducing a voluntary code of practice. It will give details of appropriate ways of contacting victims and how insurers must make victims aware of their right to legal advice. No action will be taken against insurance companies which do not follow the code. But the FSA claims is will be more concerned with investigating practices of companies which do no sign up. Road accident solicitors are not confident that this is enough and will be closely following the practice.
Tags: road accident solicitors