Compensation changes in April 2013
23.04.2013
A government legislation change is set to come into effect in April 2013, which will change how personal injury claims and compensation are managed.
Claimants will no longer be eligible to automatically secure 100% of the damages they are awarded when successful, as solicitor fees will have to be paid out of this amount.
No win-no fee alterations
The legislative alteration will mean that changes are made to claims brought under no win-no fee agreements. While solicitors are now able to recover their costs from the losing party, after the 1 April, successful claimants will see up to 25% of the compensation deducted to pay for legal fees.
Once a solicitor agrees to act on your behalf, an agreement will have to be signed to confirm that the legal team are able to take up to a quarter of the damages awarded. There will also be a 10% rise in general damages as a result of success fees and ATE insurance being recovered from the compensation.
Our thoughts
Justice Secretary Ken Clarke has suggested that this change to personal injury claims is being put into action as a deterrent to those who currently make frivolous claims, where the defendant is likely to settle simply to avoid crippling legal fees.
However, it is possible that this legislative change will impact on individuals making genuine claims. As legal fees will no longer be taken from the person responsible, this may limit a sufferer’s access to justice and also impact on their medical treatment or living expenses, as they will not be able to make full use the personal injury damages awarded. While some claimants will understandably be worried about the alterations to no win-no fee claims, our legal knowledge will ensure you get the best possible advice and the compensation payout you deserve.
If you have a personal injury compensation claim, don’t hesitate to get in contact. Our solicitors will be able to provide you with specialist legal support, and help you to secure the maximum amount of compensation.
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Compensation changes in April 2013
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