The Claims Standards Council has compiled a report into the claims handling process.
The report, which is scheduled to be published in April, recommends that trade unions be made exempt from the Compensation Bill. Instead, they should be monitored by a code of practice administered by the TUC.
Andrew Wigmore, policy director at the Claims Standards Council, said: "Sometimes adding an extra layer of regulation is not the answer and is of little benefit to the people it was designed to protect — the claimant. We have found that membership organisations and trade unions are already able to provide a standard of care that others who look after claimants would be wise to emulate. We would recommend that trade unions would probably be able to design a code that 99% of them would be happy to follow."
The Claims Standards Council questioned many of its members, including law firms, claims management companies, insurers, trade unions and medico-legal agencies.