Singer & Friedlander Insurance Finance has put its weight behind the first fee-free compensatory claim product.

The premium finance provider has made a funding provision for legal, medical and welfare organisation Industrial Diseases Compensation (IDC).

The IDC, established in 1994, pursues civil and DSS personal injury cases on behalf of claimants.

It will use Singer & Friedlander's funding solution for its new Freeclaim IDC product.

There will be no initial expenditure for claimants using the new product. Singer & Friedlander provide the claimant, through Freeclaim IDC, with the funding for the insurance policy premium and coverage for disbursements and legal expenses.

If the case is lost, all costs will be met by the insurer and, if the case is won, costs will be paid by the defendants. The only exception is interest on the funds, which Freeclaim has capped at £300, regardless of the amount of damages won.

Singer & Friedlander managing director Tony Worthy said many claim companies were recognising the benefits of premium financing as part of the growing compensation culture.

“Freeclaim IDC takes this a step further by using funding to completely remove the costs and fees usually associated with personal injury compensation claims, whatever the outcome,” Worthy said.

IDC general manager John Scott said the new product allowed everyone access to compensation for personal injury.

The introduction of the Access to Justice Act, which has effectively replaced Legal Aid, means that compensation claims are now usually based on conditional fee agreements,” Scott said.

Freeclaim IDC is unique in that it allows clients to make a claim without being subject to any initial expenditure.