110% Compensation with The Injury Lawyers!
April 2013 saw a lot of government legal reforms which have rocked the personal injury claiming world to its very core, and largely left the victims more worse off than they have ever been in the history of injury claims. We’ve known its coming for a while, and the government have caved to pressures from the multi-billion pound insurance industry to reduce the burden of legal costs to the defending parties.
But compensation in general has been increased by 10% to offset the changes victims are now suffering from – so here is an insight in to the overall picture of what’s happened.
Success Fee
This Success Fee is a fee that helps lawyers fund No Win, No Fee claims as part of access to justice rules. The government have stopped this being recovered from the opponent, and the result is that it’s now being recovered from the victim.
There is a cap of 25% which means a lawyer cannot take any more than 25% from your compensation payout to cover their Success Fee which is no longer recoverable. So now, people are generally suffering a 25% deduction from their payout.
So what’s the 10% increase?
The 10% is a general uplift which was obtained in favour for the victims who are now suffering the deductions. Now, the general amount a claim is worth has been increased by 10% to help offset the fact people are now facing a deduction of up to 25% from their payout.
So if I lose 25%, the 10% isn’t as good as it sounds?
In some ways, yes. Our general research has shown that most law firms have settled at charging their clients the full 25% from their compensation to cover their Success Fee – meaning they’re still roughly losing 15% of their claim when you compare it to the way we used to work.
BUT – we actually agree to waive the Success Fee charge to our clients for most types of claims. As such, we’re not taking any deductions from them. So the increase in 10% means our clients are actually benefiting from the new system as they’re getting an extra 10% compensation.
So The Injury Lawyers get me 110% Compensation!?
In a way, we do. We don’t take a percentage for most claims and you get the general uplift in your compensation meaning you kind of get 110% compensation following the changes. You’re getting an extra 10% if you claim with The Injury Lawyers!