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£600 paid for victim’s details
Compo culture: GT Law is paying hundreds of pounds for new clients

Published on Friday 24 June 2011 08:28

A law firm is offering to pay people £600 for a new injury claim, amid the controversy over record insurance premiums.

GT Law, which is advertising the referral fee on black cabs in Sheffield, says that it will pay the whopping sum just two days after deciding to take on a case.

People are urged to call the firm with details of a friend or relative who has been injured in a car crash or fall.

A GT Law spokesman said the aim was to cut out the middle man – car insurers and claims management companies who sell the vast bulk of leads – and pay the public direct.

He said: “After taking details from a referrer we’ll call the potential client within the hour and provided they check out and we take the case, we will pay them the referral fee.

“It’s perfectly legal, it’s just that it’s a new approach – trying to cut out the insurers and pay the money direct to the public.”

Lucrative referral fees are being blamed for a rise in the number of claims and a record 40 per cent rise in the cost of a typical comprehensive car insurance policy over the last year.

The referral fees are also thought to have fuelled a surge in spam text messages urging people to put in a claim ‘for the accident you had’.

More than a year has passed since a damning report from Lord Jackson, commissioned by the Government, recommended a total ban on referral fees, to rein in a growing compensation culture.

A spokesman for the Association of British Insurers said that they supported the move.

Source; http://www.thestar.co.uk/news/action-de ... _1_3513177

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Kind regards,

Brummie Cabbie.

Type a message, post your news,
Disagree with other members' views;
But please, do have some decorum,
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In the last year an accident management company in Brum invoiced an insurance company for £43,000 (YES, FORTY-THREE THOUSAND POUNDS) for the long term hire of a replacement licensed vehicle after the hirer was involved in an accident. The hire period was for many months, but was less than a year.

The insurance company refused to pay the bill because they believed it was excessive.

The accident management company issued a summons against the insurance company.

The Court ruled in favour of the accident management company!!

_________________
Kind regards,

Brummie Cabbie.

Type a message, post your news,
Disagree with other members' views;
But please, do have some decorum,
When debating on the TDO Forum.

I had a non-fault (minor) bump a couple of years back. My claim was sorted within a few months, total around £3500. The car hire claim is ongoing, total claim over £8000. Something wrong with that.

It's a racket, and it's costing us all serious money.

Insurance down here has gone up nearly 40% this year.

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IDFIMH

Maybe if the Insurance Companies coughed up with less fuss on vehicle insurance claims there would be far less need for the public to use these accident chasers in the first place...

there was one locally last year when a van driver left his handbrake off and rolled into the taxi knocking the drivers cup of tea off the dashboard allegedly breaking the aircon the driver was driving around in a "replacement taxi" for 8 weeks at £950 a week cost to the insurers whilst his vehicle was repaired

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lack of modern legislation is the iceberg sinking the titanic of the transport sector