Road Accident Solicitors: Third Party Capture Or Third Party Assistance
Naturally, road accident solicitors and insurers don’t always see eye to eye. But there is one practice upon which the two parties disagree so much that they cannot even agree on its name. Insurance companies will refer to is as third party assistance whilst road accident solicitors go with the more fear-inducing third party capture.
Whatever its name, it is the practice of insurers directly contacting a third party with a claim against one of its policy holders making an offer of settlement. The important point is that the claimant is contacted very promptly, before having sought legal advice. Indeed, some claimants have reported being visited at home within hours of the accident.
Road accident solicitors have protested against this practice for years now, arguing that legal advice is a must in such situations. They also claim, very convincingly, that in offering to settle the claim, insurers face an impossible conflict of interest. Wanting to keep their own payout costs low and claiming to offer fair compensation to claimants are surely mutually exclusive.
Much to the disbelief of road accident solicitors, insurance companies claim that the compensation paid out this way is not lower than the settlements advised by lawyers. They also state that dealing with payments this way is quicker. This is no good if the amount paid is unfair, claim road accident solicitors.
Usually, actions such as third party capture/assistance would be regulated by the Compensation Act 2006 which regulates claims management activities. However, insurers are already regulated by the FSA.
The Association of British Insurers is shortly going to be introducing a voluntary code featuring guideline for the practice. It will stipulate how victims ought to be contacted and that insurers must make victims aware of their right to independent legal advice. No action will be taken against insurance companies which do not follow the code. But the FSA claims is will be more concerned with investigating practices of companies which do no sign up. Road accident solicitors remain unconvinced and will be keeping a close eye on the practice.
Mail this post
Road Accident Solicitors Warning
Most of us don’t come into contact with road accident solicitors very often and we all hope we will never need to. But accidents do happen, so imagine this. You’re minding your own business driving along when another driver hits the back of your car. You weren’t to blame for the accident. So, as the law states that you must, you both stop and swap contact and insurance details and you go on your way planning to contact your insurers later on in the day.
Then, also imagine that at home, before you have even found the time to call your insurers, a representative from the other driver’s insurance company knocks on your door. He or she is offering to write you a cheque there and then to compensate your injuries and losses in the accident. This is great you think!
Nevertheless, road accident solicitors might suggest that you stop to consider whether this really is the good deal it sounds. The practice of insurance companies contacting the claimant offering to settle their claim right away is becoming increasingly common. When insurers do this it is usually very soon after the accident. Believe it or not, there have been reports of insurance company representatives arriving at the scene of an accident offering to resolve claims on the spot.
Although all of this may sound like efficient and prompt service, road accident solicitors warn consumers about the practice. Consider why the insurance companies would be so keen to settle claims so quickly. Indeed, consumers should question the motives of an insurance company trying to settle a claim before legal advice has even been sought and before the full extent of the injuries have become apparent.
Many road accident solicitors and personal injury lawyer associations are warning that companies are actually trying to save themselves some money whilst claiming to provide efficient service. This is because, should they agree to the proposed amount of compensation, the insurance company requires the claimant to sign a form stating that they accept the offer in full and final settlement of the claim. This simply means that once that form has been signed, there is no going back, regardless of any circumstances or injuries which later become apparent and regardless of the involvement of road accident solicitors.
Consumers might therefore accept a settlement worth less than they deserve or need. It is well known that the full extent of injuries may take several days or even weeks to be clear. Compensation is partly intended to pay for ongoing treatment of accident victims’ injuries, so a full understanding of the extent of the injuries is important before accepting payment. Road accident solicitors therefore advise that consumers should seek legal and medical advice before agreeing to any settlement.
In order to try and protect consumers from being left out of pocket as a result of this practice, the Association of British Insurers has put together a voluntary code of practice. It states that if an insurer wishes to make an offer of settlement they must make the consumer aware of their legal right to seek independent legal advice. It also suggests that making initial contact by letter or telephone rather than in person at a claimant’s address avoids intimidation.
Mail this post
