Challenge to April legislation is ‘disappointing’ says LV= boss

John O'Roarke cropped

The judicial review of legislation to extend the RTA Portal and provide a cap on legal fees has drawn fire from LV=.

LV= managing director John O’Roarke (pictured) said the challenge was about lawyers protecting their own interests at the expense of honest motorists.

“It is disappointing that certain personal injury lawyers are challenging the bill that sought to bring the claims farming industry to account by capping the fees they could make from these cases and banning referral fees for good,” he said.

“This action is not about securing access to justice but, rather, protecting the interests of those who stand to lose a lucrative source of revenue. If the challenge is successful, hard-pressed motorists will not benefit from reduced premiums and the lawyers will continue to take advantage of the compensation system for their own benefit.”

Research by the insurer has revealed that one in 20 (6%) crash victims are contacted by a claims management company or personal injury lawyer within just two hours of their accident, with the pressure to seek compensation often being piled on while they are receiving medical care, and that 53% of GPs have been directly targeted in the past year by claims management firms on the hunt for patient details in exchange for a fee.

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