Lawyer Raymond Donn says recent claims fees deal should end bogus claims.
The agreement reached by A.P.I.L, The Law Society and insurers is set to see the introduction of fixed fees for RTA (road traffic accident) claims under £10,000.
The deal means that many claimant solicitors will have to sacrifice their current level of fees.
I welcome the news. It creates certainty with regards to costs and is fantastic news for both insurers and lawyers.
I have invested a vast amount in developing technology to ensure a first class claims service. The new agreement will be a great benefit to those efficient lawyers.
I am certain that it will also highlight those solicitors who have not invested in technology. There are firms out there who have a high level of average fees due to an ability to build up a large file and by doing work manually.
"There is no place for such lawyers in tomorrows' claims scene."
I believe that it will also herald the departure of some claims farmers who have hijacked claims and then "sold" them back to desperate lawyers for extortionate fees.
The advent of a fixed fee regime will mean that the fixed fee will not be sufficient to cover that "built in marketing element". They will not find lawyers who will be able to afford or are willing to pay them. This will leave them with no alternative but to leave the RTA Claims arena and concentrate on other markets. This will strengthen the existing legal expense market.
This is the first step to ridding the industry of companies who have seen the claims market as a quick opportunity to make rich pickings. Once they have been flushed out then those of us from both sides of the fence who have long-term pride in the claims industry can settle back to achieve what is a common goal - a fair settlement.
It has been suggested that the timetable for this agreement being implemented is Autumn 2003, but I urge insurers to think ahead and not to wait until then.
If it is beneficial in the Autumn then it is beneficial now.
