It seems apt right now to write a blog on the actions of our insurance companies being slammed in the media. I say this as it is has been widely reported in recent days that insurers are selling information on to personal injury referral agencies and law firms for profit.
It is Jack Straw which has spurred on this issue and highlighted the conduct of our insurance companies after one of his constituents reportedly had an accident and was swamped with personal calls and texts to take on his claim; despite the fact that he was not even injured.
In response to this, Jack Straw, in a bid to discover how these companies had got hold of his constituents details, including his mobile telephone number, uncovered the fact that it is indeed insurance companies that had been selling on customers information.
This highlights an issue which we have been educating our blog readers on for some time; the issue being that of Legal Expense Insurance, or Motor Legal Protection. These can be attached to your insurance policy, and you are told they cover your legal costs if you became injured in a car accident. This may be true; however, if you went to a reputable no win no fee lawyer, this would be the case anyway (ensuring you read the agreement through thoroughly). Plus, as I discovered only recently on my own policy, you may pay for the privilege of having this attached to your policy (I didn’t even realise it was there). So not only may you be paying for it, but the insurers are also making money from selling your contact information after your accident – the Telegraph have reported this can be as much as £200 – £1000 per claim.
Jack Straw has reportedly commented that referral fees should be banned. He states that the increase in personal injury claiming is driving up the costs of our premiums and that the sale of information is contrary to the spirit of data protection. He has in fact blamed the premium increases on the insurers themselves for selling on details and increasing claims. So, it can be seen that insurers may be making money from all angles – from selling you motor legal protection or legal expense insurance, from selling claims to referral agencies and/or law firms, and from premiums being increased.
At The Injury lawyers we never buy claims from referral agencies or insurers, all our clients come to us directly. We feel this is a testament to the service we provide and the results we get for our clients.
