Civil Costs Review is Bonus Time for insurers14 January 2010
Implementation of Lord Justice Jackson’s Review of Civil Costs will take up to 50% of injured people’s compensation while insurers get extra profits, the UK’s leading personal injury law firm warns.
Jackson’s final report, published today, ends insurers paying a success fee and says that the claimant should pay up to 25% towards their costs from their compensation.
Disbursements – money paid out in court fees and for medical reports - will also have to be paid by the injured party, under Jackson’s recommendations, in the many cases which do not succeed.
Tom Jones, Thompsons’ head of policy and public affairs said: “The champagne corks will be popping at insurance headquarters, they have got almost everything they have been lobbying for. Claimants are going to be paying out of their damages and insurers will be paying out to their shareholders.
“The furore about no win no fee lawyers taking money from compensation has been forgotten. The report effectively takes money out of victims’ pockets.”
A proposed increase of 10% in one aspect of damages is woefully inadequate to make up for what the injury victim is going to lose, Mr Jones added.
Thompsons welcomed Sir Rupert’s decision not to increase the small claims limit for personal injury cases, but is disappointed that a reform that would have a hugely negative impact on claimants has not been ruled out altogether.
“It seems that only if the insurer friendly medicine being recommended is swallowed in full will the threat of kicking the claimant further on small claims be removed.
“People will say that access is maintained but this is not what we would recognise as justice for claimants.”
This news story has also been published by Law Society Gazette.
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