We’ve been covering this a lot lately – simply down to the fact that most other law firms are now charging clients up to 25% of their compensation and asking for payment of an insurance fee. Why? Because our genius government decided that years and years of access to fair justice should be quashed in favour of insurance companies saving money. Whether this is down to how much money a lot of politicians seem to have in the insurance industry is a question in itself; but I digress.
April 1st 2013 saw the biggest shakeup in the personal injury claiming world ever. For the first time in a long time, the innocent victims of negligence are now expected to pay to be compensated. Whilst lawyers can still recover most of their legal fees from the other side, we can now no longer recover a Success Fee and an After The Event Insurance fee.
The Success Fee is part of our fees that reflects the risk of a case. Some are riskier than others, and we can’t win them all – so we do lose money when we cannot continue a case on a No Win, No Fee basis. This Success Fee now cannot be recovered from the other side, and this is where the 25% has come in. The reason why it’s commonly 25% is because that is the maximum a lawyer can charge a client for the success Fee.
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