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General News Jun 1st, 2012

‘Repugnant’ insurers auction claims

Yest again the insurance industry has been caught lining its pockets with referral fees, this time by ‘autioning’ bundles of claims to the highest bidder.

An article in this week’s Law Society Gazette says that the price paid by solicitors for the these cases largely depends upon the severity of the injuries sustained.  The article describes the practice as ‘ethically questionable as well as morally repugnant’.

The government are planning to ban referral fees from April 2013, but many insurers are setting up ‘in house’ law firms to enable them to continue to profit from the work.  They will not offer accident victims a freedom of choice of solicitor, as that will run contrary to their business model.  Once again, profit will triumph over proper legal representation and access to justice.

Richard Lowes
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