OK – so there is this whole thing about a ‘compensation culture’ in the UK that has hit the headlines on numerous occasions. In reality, if you read the Lord Young / Jackson reports of late, the whole idea of a ‘compensation culture’ was deemed a media fuelled myth, of which there really is no issue.
The most recent headlines have been those of our former justice secretary Jack Straw whom, after investigating how one of his constituents details were sold around for money between claims companies and insurers to solicitors, hit out at the frivolous profit making industry of personal injury referral fees; something which we never pay and have always been against.
The insurers themselves were blamed for the increase in our car premiums as it was uncovered that it was the insurers themselves that are a party to the referral fee system, in which their own policy holder’s details are passed over to solicitors who are willing to pay huge referral fees of up to £1000 per claim. This has, according to recent news, been responsible for an increase in ‘frivolous’ claims that have not only driven our premiums up, but provided the insurers with a millions of pounds in profit from passing the details of accident victims over.
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