Car accident news
21/02/2008

Insurance companies try to prevent compensation claims

This weekend's Observer reported on a number of cases where insurance companies are finding people who have been involved in a car accident and offering to pay compensation before they begin a claim. In several cases, the fact that this waives the right to make a personal injury compensation claim has not been mentioned.

The Financial Services Authority has been approached by trade unions and no win, no fee solicitors with evidence of this practice, in the hope that it can be prevented.

Unite, the trade union, draws attention to one case where a firm offered £4000 in "full and final settlement" only to settle the case for £35,000 after proper procedure was followed.

APIL (the Association of Personal Injury Lawyers) can point to other car accident cases where similar disparities between the insurance company's original offer and final settlement can be seen.

A Leeds-based personal injury solicitor handling a case in which this procedure, known as "third-party capture", was attempted, said "A considerable amount of pressure was put on my client. Visiting an accident victim's house in the aftermath of a car crash is clearly outrageous."

Advice from the Observer, drawn from a legal firm, states:

• If you are injured in a car accident, you should take independent legal advice.
• If you are a trade union member - or a family member is - you can receive this free through the union's legal service. If you are not, go to a specialist personal injury lawyer firm.
• Don't trust insurers who knock on your door and want to talk about a claim, or ring or write to you and offer compensation.
• The time limit for pursuing a compensation claim with a personal injury solicitor is normally three years, so don't rush into accepting any financial offer.