The injured have a right to claim, says Chris Wait
Just over two years since the introduction of the Access to Justice Act in April 2000, a battle has raged between liability insurers and the after-the-event (ATE) market. The perception is that the UK's burgeoning compensation culture has been fuelled by cases such as Callery v Gray, English v Clipson et al.
I disagree with this standpoint and I also think the compensation culture is not a bad thing.
There are people in society who genuinely deserve and need compensation for accidents in the workplace. Making it easier for them to have access to compensation is surely not bad.
When the legal aid system was around, it was virtually impossible, even if the claimant had a very bad case that was lost in court, for liability insurers to recover any of the costs - legally aided claimants were virtually immune from costs orders.
Strict criteria
Since 2000, that situation has improved dramatically for liability insurers - they now recover their costs in full when they are successful in defending claims. There is very little fraud in personal injury cases and now ATE insurers and claimant solicitors have strict criteria as to what will make a successful case - far more strict than what would pass as a legally-aided case, as it is now their money at risk - not that of the taxpayers.
Everyone has the right of access to a solicitor and to look for compensation if someone causes him or her injury.
It is a shame that Prince Charles has even found it necessary to enter the debate. He has immediate access to private medical care and no loss of earnings, should he suffer an injury caused by someone else; to lecture others about a worrying compensation culture really is a bit rich. He should talk to people who do not get paid if they take time off work due to injury and who have to use the bus to visit hospital and then wait for several hours to see a doctor. These are people who need to be properly compensated and who need the most help to achieve a level playing field with the insurers. This is the true picture of many people who claim compensation and, for my part, through ATE insurance.
ATE insurance can help them achieve that level of equality. I offer an open invitation to anyone to visit our offices and look at cases where, without ATE insurance, the claimant is ignored by liability insurers. As soon as the claimant obtains ATE insurance their case is taken seriously.
The ABI recently published figures that show that, of the annual value of injury claims in the UK, less than 1% of the cost of claims over the last two years can be put down to the ATE market.
Directors and shareholders of insurance companies should look much closer to home for the real reasons for their failing liability accounts and stop blaming the ATE market.
Poor underwriting philosophies, an unhealthy craving for larger market share and poor to non-existent risk management by insureds are the real causes why liability accounts are in poor shape.
