Referral fees, or the selling on of personal injury claim details, are to be banned the Government has announced today
The rise in insurance costs and spurious injury claims has led the government to finally ban the referral fee culture that exists in the insurance industry. The director of the Association of British Insurers welcomed the ban, but warned that there needs to be a ‘watertight’ definition of referral fees to ensure that legitimate claims such as those for spinal injuries and asbestos-related illnesses don’t get lost.
In 2009 road accidents that involved injury were down 30% on the ten years before, but the cost of personal injury claims has doubled to nearly £14 billion and car insurance premiums have risen by nearly 40% this year alone.
We would like to make it clear that neither Motor Defence Solicitors or our sister company White Dalton Motorcycle Solicitors get involved in the business of paying insurance companies for referrals. Our clients use us because they know that we are independent and impartial. Our focus is on you, the client, not keeping insurance companies in pocket.