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Perhaps the most important thing any personal injury compensation claimant needs to know is that, with Direct2Compensation, they will pay NO COSTS whatsoever should their claim fail. Although your Solicitor will receive no fee for their work should the claim fail, the costs of the defendant in cases that have failed will be covered by insurance polices. The only caveat to this is if a claimant is found to have fraudulently or dishonestly attempted to claim compensation.
Since the Government introduced the LASPO Act 2012 in April 2013 (commonly known as the Jackson Reforms) there is now a cost to making a successful claim. As a result, the claims process now sees successful claimants having a small portion of any settlement awarded to them deducted.
The government agreed with the insurance industry that claimants should contribute to their own legal fees, and therefore claimants can no longer force 3rd parties to pay for insurance policies taken out to protect them during the claim. Solicitors were also prohibited from charging success fees when winning a claim and the government stated that clients should lose a maximum of 25% of any settlement that now forms part of their solicitor costs. The successful claimant can also no longer recover the cost of the ATE premium (if such a policy is used) used on their claim. As such, the claimant must repay this if they succeed with their claim, but not if they fail.
Whilst we argued that this would not be fair on claimants who had no responsibility for the accident in which they were injured, and therefore should not have to pay anything for claiming compensation, the government saw otherwise. As a result, the 25% deduction obligation was passed in to law.
Whilst this isn’t ideal for injured claimants, pursuing a claim for compensation after being injured in an accident is still very worthwhile as any successful claimant will still receive 75% of final claim settlement that is awarded to them. With Direct2Compensation, you can be certain that our solicitor partners will work hard to maximise your claim settlement and do all they can to minimise any deductions.
Remember, with Direct2Compensation you pay nothing if your claim fails as your Solicitor will indemnify you of the risk of being liable for any costs whatsoever should your claim not succeed.