Insurance products for UK residents

The end of no-win no fee

There has been much made in the press about the action of 'claims farmers' and ambulance chasers jumping onto a claim and offering to process it on a 'no win no fee basis'.

In practice an insurance policy is taken out by the firm (and paid for by the client) so that if they lose the costs are born by the insurance industry. These policies are often sold at a large mark-up but the net effect is that the claim company can pursue the claim at little or no risk.

The Jackson report means that this business model will be severely constricted. So what does it mean.

As an insurance broker, our advice would be for customers to ensure that they have personal and motor legal expense cover. This cover may be part of an existing home (personal) or motor insurance policy or sold as an add-on by the broker or insurance company. (check your policy before you buy the add-on as you may be covered twice). If you are a member of a Union or other organisation they may provide a service as part of the membership.

The premiums are usually cheap (don't pay more than 20.00 for either policy). Certain occupations may need a specialist policy as these add-ons only apply for people acting in a personal capacity e.g. employment disputes, sale of homes, sale of goods act etc and would not cover specialist events such as libel and slander.

For more information contact JB Portwood john.portwood#portwood.co.uk

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