Law firm voices concern over insurers' 'underhand' tactics

Lancashire law firm Napthens Solicitors is raising concerns about the increasing use of underhand tactics by insurers in settling personal injury claims.

Lawyers in the personal injury department are seeing an increasing amount of insurers going direct to claimants and offering compensation payments, even though the client has instructed a solicitor to deal with the claim.

Richard McDowell, personal injury partner at the Preston office of Napthens, said: “I am really quite concerned about this new way of dealing with claimants from insurance companies. We have been made aware by claimants that they've been approached by insurers, who are avoiding the proper channels and offering payments to them which are nowhere near the compensation figure claimants are entitled to.

“Claimants are often lured by the fact the insurers are offering a payment there and then if they agree to cease with the claim. They could be losing out by accepting a speedy, but low, settlement at a time when it is so soon after the accident that no one can know what the true extent of the claim. In some respect this practice could be viewed as preventing the client gaining access to justice.”

In one instance, a 16-year old client of Napthens who has submitted a claim due to a road traffic accident was approached at his home and contacted via his mobile phone by representatives of the insurance company.

McDowell added: “This is totally inappropriate behaviour. Not only was the client a minor and the insurer should have recognised this, they visited his family home and rang him on his mobile phone – the details of which were obtained from the case file and used without his parents, our or his consent.

“I believe if it is happening to us then it must be happening across England with alarming regularity and the ABI should step in and bring this practice to a halt.”