Law Society chief executive Desmond Hudson told the Transport Select Committee this week that Claims Management Companies should be closed down, as the selling of claims by insurance companies may have contributed to exaggeration and fraud.
“Aggressive marketing by Claims Management Companies is at the core of the problem,” he said.“These companies add nothing to the process.”
Hudson also told the committee that the Government’s proposals to prevent fraudulent whiplash claims hit the wrong target and risk access to justice for genuine accident victims. He said that plans to raise the limit of the small claims track for PI claims, and proposals put forward by the insurance lobby to reduce the limitation period and lower damages, were not in the interests of consumers and did little to tackle the tiny minority of fraudulent claims.
“The Government is making policy based on evidence that is almost a decade out of date. The most recent report from European insurance companies actually shows that claims made in the UK fell by 6%, while German insurers experienced an increase of 2% and in France claims remained stable,” said Hudson.
“Changes already made by the Government on the basis of a deal to make claims more difficult in return for which insurers would reduce car insurance rates seem likely to leave the Government with egg on its face.”
ASD Solicitors do not accept referrals from Claims Management Companies (CMC). The message is clear – personal injury claimants should go direct to a specialist Solicitor and not to an unregulated unqualified CMC.