There are some very serious changes coming for anyone bringing a personal injury compensation claim in the immediate future, especially when it comes to the disposition of no win no fee legal claims, a popular form of litigation when it comes to injuries caused by road traffic accidents such as whiplash.
First things first: many claimants may hear the phrase ‘changes to no win no fee’ and panic, but the truth is that the changes are for the most part positive ones. You will still be able to seek legal advice and retain the services of a personal injury lawyer without having to be responsible for paying any up front legal costs, which is one of the most important aspects of conditional fee arrangements as many claimants injured in car accidents may need to miss weeks or even months of work as they recover from their injuries.
In fact, the only changes that you need to worry about are that no longer will your lawyers be paid by the defendant if they win your case. Instead, your personal injury solicitors will instead have their court costs and legal fees paid from your compensation award in an effort to reduce the burden on insurers, who have up until now not only had to pay a claimant’s damages but also pay thousands upon thousands of pounds in addition in order to compensate a winning claimant’s legal team as well.
your compensation payment is safe
The fact that winning lawyers will soon be paid out of the winnings of a successful case may sound ruinous for a claimant, but there have been several safeguards built in to the new system in order to preserve the majority of a claimant’s compensation award. In the interest of limiting the amount of money that goes towards the costs of bringing the case in court, new regulations will limit a lawyer’s ‘success fees,’ reducing them by as much as 90 per cent of their current figures once the change goes into effect, and while it may be bad news for lawyers it’s undoubtedly good news for anyone who worries their compensation award will be eaten up by legal fees.
In addition to that safeguard, there is one more that has been instituted by the courts in order to protect the interests of the claimant. It has been ruled that compensation awards for personal injury will likewise be increased by around 10 per cent overall in order to provide a larger cushion for both the solicitor and the claimant while also being a net gain for insurers already strapped for cash after years of paying through the nose.
© 2012 All rights reserved. Reproduction in whole or in part without permission is prohibited.
Image: Court Room by greggoconnell