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Jonathan Djanogly MP, parliamentary under-secretary of state for justice, confirmed that the legislation for the banning of referral fees will be refined to personal injury.
Speaking to Post following his evidence to the transport committee on its probe into the cost of motor insurance, Djanogli stressed that the ban on referral fees is for PI claims and no further.
He added that the legislation for the ban however would be drafted to leave it open ended for the future if government feels that more needs to be done.
Speaking alongside Mike Penning MP, parliamentary under-secretary of state for transport, Djanogly said that referral fees are a “symptom of the compensation culture rather than the cause”.
“When we look at things like referral fees I would put them into the same basket as SMS texting, as garages selling this, as inducement adverting – all of these are symptoms of the culture,” he said.
He added: “We are looking at both the receipt and the payment of referral fees. My hope is that it will be put into the Legal Aid Bill, that has not yet been finally signed off but that is what I am pushing for.
“What I want is for it to go through in that bill because it ties very cleanly with the other civil costs in Jackson’s provisions which we do think should come into play all at the same time.”
Penning agreed that he is very keen to get this bill through and said that it would form part of a package that will start to address the cost of insurance.
Original Article: Post
Medico Legal News Source: Claims Standards Council
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