The old Legal Expenses Insurance Scam/TV Claims Companies
Discussion
If anyone here has had an accident envolving personal injury in the past, you may have reported the matter to your insurers(as you are legally obliged to do) and then been told that they have a wonderful lawyer who would be delighted to deal with your claim.
A few months later you realise that what you actually got was either an 'Executive' ,'Paralegal', or even an unqualified person apparently supervised by a solicitor who you can never seem to get hold of.
You may be surprised at what your insurance company has done. You may be less surprised when you find out why they have done it.
Most insurance companies offer Legal Expenses Insurance and either make no charge or add about £20 on to your premium. You are rarely if ever asked if you want the insurance. Unknown to you your insurance company will in the past have concluded an agreement with a firm of solicitors (who will have paid the insurance company a lot of money for the privilege) to send all of their customers claims to that firm.
Some insurers and insurance brokers also charge the solicitors an additional fee for sending them the case! This fee could be as much as £500. Of course you are never told about this.
Because a lot of legal expenses insurers are connected with the insurers who provide your bike insurance they then ensure that your claim is settled as quickly and as cheaply as possible. If you don't like the offer to settle then they will threaten to withdraw your legal expenses cover.
The whole system stinks and is designed to benefit insurance companies and not those who have had their bikes damaged, or those who have been injured.
Also beware of claims management companies advertising on television, normally fronted by a well known celebrity. They will charge you an administration fee which you will not be able to recover.
No-one has to use these people. Any decent, experienced lawyer will offer you a No Win No Fee agreement and when court proceedings are issued you do have the right under European Law to nominate your own solicitor to deal with your claim.
There are plenty of lawyers who specialise in bike accidents-see Motor Cycle News or contact the BMF Biker Legal Line Service.
A few months later you realise that what you actually got was either an 'Executive' ,'Paralegal', or even an unqualified person apparently supervised by a solicitor who you can never seem to get hold of.
You may be surprised at what your insurance company has done. You may be less surprised when you find out why they have done it.
Most insurance companies offer Legal Expenses Insurance and either make no charge or add about £20 on to your premium. You are rarely if ever asked if you want the insurance. Unknown to you your insurance company will in the past have concluded an agreement with a firm of solicitors (who will have paid the insurance company a lot of money for the privilege) to send all of their customers claims to that firm.
Some insurers and insurance brokers also charge the solicitors an additional fee for sending them the case! This fee could be as much as £500. Of course you are never told about this.
Because a lot of legal expenses insurers are connected with the insurers who provide your bike insurance they then ensure that your claim is settled as quickly and as cheaply as possible. If you don't like the offer to settle then they will threaten to withdraw your legal expenses cover.
The whole system stinks and is designed to benefit insurance companies and not those who have had their bikes damaged, or those who have been injured.
Also beware of claims management companies advertising on television, normally fronted by a well known celebrity. They will charge you an administration fee which you will not be able to recover.
No-one has to use these people. Any decent, experienced lawyer will offer you a No Win No Fee agreement and when court proceedings are issued you do have the right under European Law to nominate your own solicitor to deal with your claim.
There are plenty of lawyers who specialise in bike accidents-see Motor Cycle News or contact the BMF Biker Legal Line Service.
Lawrence
Are you referring to the old 'Claims Direct' which went bust a few years ago, or the new company which is actually a branch of a firm of solicitors?
If the former then you will almost certainly had some part of your compensation kept back for an insurance premium.
I dont know how long it took you to recover from your injuries but if the £1600 was purely for your injuries then this is the sort of sum which is appropriate for a whiplash injury where full recovery is made in about 6 months.
Having said that I assume you would have claimed for damage to your bike, riding gear,etc?
If they were not solicitors then they could not recover your legal costs and they would have deducted these from your compensation. On the other hand solicitors will recover your legal costs in addition to your compensation.
Are you referring to the old 'Claims Direct' which went bust a few years ago, or the new company which is actually a branch of a firm of solicitors?
If the former then you will almost certainly had some part of your compensation kept back for an insurance premium.
I dont know how long it took you to recover from your injuries but if the £1600 was purely for your injuries then this is the sort of sum which is appropriate for a whiplash injury where full recovery is made in about 6 months.
Having said that I assume you would have claimed for damage to your bike, riding gear,etc?
If they were not solicitors then they could not recover your legal costs and they would have deducted these from your compensation. On the other hand solicitors will recover your legal costs in addition to your compensation.
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