APIL and MASS link with TUC to allege low claims payouts
The Motor Accident Solicitors Society (MASS) and Association of Personal Injury Lawyers (APIL) want evidence of insurers’ third party capture, to force the Financial Services Authority (FSA) to ban or regulate the practice, the Law Society Gazette reports.
The Trades Union Congress (TUC) says it too has evidence that insurers are denying liability in valid claims and under-settling others.
MASS chairman John Spencer said that third party capture should be banned unless three conditions are met:
- That insurers provide proof that third parties have been informed about the availability of independent legal advice
- That a clear set of rules on third party capture is developed
- That effective sanctions are applied by an ‘appropriate regulator’.
“Let us be in no doubt whatsoever, the only reason insurers want to settle claims direct with claimants is to reduce their costs,” he said.
The Association of British Insurers (ABI) is to publish guidance on third party claims assistance that will make policyholders aware of their legal rights.
