Ban on referral fees sparks increase in personal injury claims

Later this year there is to be a ban on the fees that claim management companies and lawyers can pay to insurers in order to receive personal injury leads. LV, a major UK insurer, has now reported a large increase in the number of claims in the run up to the ban in an attempt to get as many claims through the door ahead of the deadline. LV have announced that as a result of this increase in personal injury claims (as well as the flood claims) over the last year the businesses profits have fallen by £25 million. For some time now there has been debate around the fees that insurers have received in exchange for accident details and many insurers have argued that this encouraged the claims culture to grow, ultimately leading to the increase in motor insurance premiums. The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.  Setfords Solicitors are a national full service law firm, with personal injury solicitors in Dartford and across the country.