Claims Direct, Investec Bank and insurance specialist Litigation Protection have joined forces to offer the public a new method of providing after-the-event litigation cover.
The move will radically alter the way Claims Direct operates. Previously it made money by taking 30% of the customer's award. Under the new policy, called Claims Direct Protect, it will take after-the-event insurance premiums from customers. These premiums will be financed by Investec.
Investec has committed £30 million to the project and is providing credit for non-status loans for clients to receive the cover when pursuing cases through Claims Direct. Claims Direct Protect will allow personal-injury claimants to be totally indemnified against all costs and to receive compensation payments in full.
The product was developed after demands from the Lord Chancellor for businesses to help provide members of the public with greater access to justice.
Claims Direct is currently accepting 2,000 cases per month and expects to double that figure under the new deal. The company will also be expanding its panel of solicitors from 180 to 230. The specialist Lloyd's underwriters involved are led by Ian Hacker of the Venton Syndicate. Hacker said: “The Lord Chancellor has been looking for support to help facilitate the transition from public to private funding and we at Lloyd's have used every endeavour to support this.”
Tony Sullman, chief executive of Claims Direct, said: “The Lord Chancellor called in 1997 for innovation to support his commitment to changes in legal processes under the Access to Justice Act.”
