New law 'could make it harder for victims to pursue compensation claims'

The Motor Insurance Regulation Bill 2010-11 could make it harder for victims of accidents to obtain sufficient compensation, an expert has warned.

Personal injury solicitor Adam Hodson has warned Shropshire Live that the bill could lower compensation payouts and raise legal costs for those who have been injured by another driver.

He said that the populist move of banning referral fees, combined with a reassessment of compensation levels, will overturn long-established legal principles that have been tried and tested by the courts.

A reduction in the amount of time that specialist lawyers can spend assessing the cases of accident victims will also hurt those looking to pursue a claim as it will not provide enough time to investigate complicated factors such as lost earnings or rehabilitation and care costs, he warned.

Mr Hodson said: "Halving these initial costs could impact on the quality of legal advice which a victim may receive, or mean that they will have to pay some of their own costs."

Last month, the Ministry of Justice announced that it will be banning referral fees for personal injury compensation claims in order to drive down the cost of defending a claim.


Published by Phil Hammond