Justice secretary Ken Clarke has confirmed that the government will modify ‘no win, no fee’ arrangements with its implementation of the Jackson Review.
Talking to the Radio 4 Today programme, Mr Clarke touted a system which would abolish success fees, with claimant lawyers getting paid with a share of the damages instead.
Mr Clarke will address parliament today outlining the government’s plans for the implementation of the Review of Civil Litigation Costs, published in December 2009.
Commenting on the plans, Nick Starling, the ABI’s Director of General Insurance and Health, said: “These reforms should be good news for genuine claimants, who too often struggle to get fair compensation under the current system.
“The ABI has long campaigned for reform that puts the genuine claimant at the heart of a simpler, faster, more cost-effective system.
Mr Starling added: “For too long ambulance-chasing lawyers and claims management firms have encouraged many people to believe that there is a compensation culture to exploit.
“The result has been a slower process for genuine claimants, and out of control legal costs that end up being paid for by all consumers through higher insurance premiums. Currently, for every £1 motor insurers pay out in compensation, an extra 87 pence is paid in legal costs.”
Included in the Jackson Review are proposals for a greater promotion of before-the-event legal expenses insurance, and a potential 25% of a successful claimant’s compensation payable to lawyers to subsidise running lost cases, currently paid for out of success fees.
Medico Legal News Source: PostOnline
