WHAT ARE THE OPTIONS FOR FUNDING AN ACCIDENT CLAIM?


Adam CresswellHi, I’m Adam Cresswell. I am an Accident Compensation Claim Legal Specialist. If you have had an accident then please call me to have a Free No Obligation Chat. I work on a No Win No Fee Basis so it will not cost you a penny to make a claim. I will work hard and fight for you to make sure that your claim is successful and see that you get the maximum amount of compensation that you are entitled to.

Please call me to have a free, no obligation chat about any Accident Claims on 0800 3 10 11 12 or contact us.

FUNDING AN ACCIDENT CLAIM


There are various alternative ways of funding an accident claim. These are set out below. This explains the alternative ways of funding an accident claim. There are currently six main ways of funding an accident claim.

  1. Conditional “No Fees Ever” Arrangements.
  2. Civil Legal Aid.
  3. Legal Insurance cover (Before the Event).
  4. Legal Insurance cover (After the Event).
  5. Traditional Private Client Retainer.
  6. Union funding.

 

WHO IS RESPONSIBILE FOR FUNDING AN ACCIDENT CLAIM?


At the outset we have to make one thing clear. If you pursue an accident claim then you will be primarily responsible for paying all the costs and expenses. Don’t worry however, this page provides various options open to you so that you can be covered and protected from these costs risks if you make an accident claim.

In an accident claim the usual rule is that the losing party pays the winners reasonable costs and expenses. You need to be aware of the costs risks you face in the (unlikely) event of losing. We realise how worrying this can be and this is why the options described on this page will provide you with the protection and cover that we think you may need.

CONDITIONAL “NO FEES EVER” ARRANGEMENTS


We can offer Conditional “No Win No Fee” Agreements and “After the Event” Legal Insurance for funding an accident claim. These are very popular as now they can mean that whatever happens you shouldn’t have to pay a single penny, win or lose.

Under a Conditional Fee Agreement we will not charge you for our services whether you win or lose your case. If you do win your case then we can charge a success fee over and above our basic costs. The success fee is subject to a maximum of 100% of our basic costs. Maximum success fee is 25% of your accident claim compensation.

With “No Fees Ever” Agreements we take out and pay on your behalf an After the Event litigation insurance policy. This covers you against the risk of you having to pay your opponents legal costs in the event that your accident claim is unsuccessful. The insurance provides you with up to £100,000 of cover.

Therefore with “No Fees Ever” Agreements if you lose you don’t have to pay anything. If you win we can now recover from your opponents a success fee, any insurance premium, and all of our costs and fees so that you don’t have to pay a single penny, win or lose.

We are members of The Law Society’s Personal Injury Panel which is an organisation only open to Solicitors who can demonstrate an expertise and experience in accident claim. We do not have any other interest nor do we receive commission or other payments from the panels or organisation.

LEGAL AID


From April 2000 onwards Legal Aid ceased to be available for people funding an accident claim. The Access to Justice Act 1999 created a new body that replaced the Legal Aid Board called the Legal Services Commission. This offers a very limited form of funding for cases and is only available in very exceptional circumstances.

LEGAL INSURANCE COVER (BEFORE THE EVENT)


Some people may already have some form of legal insurance cover for funding an accident claim. You should check this out by looking at either a dedicated policy or by it being included as an extra benefit in a household or home and contents insurance or a motor insurance. Even some credit cards provide some legal insurance.

The advantages of this type of cover are obvious. Although you remain primarily responsible to us for payment of costs and funding an accident claim, your policy should indemnify you against this. The cover should meet not only your opponents costs but also our own in the event that your accident claim fails or if there is a shortfall for funding an accident claim.

Any cover is conditional on you having a reasonable chance of success. Check if the cover includes own costs only or opponent’s costs or both sides’ costs. You will need to study the terms and conditions carefully as these can vary. You have the right to choose the Solicitor of your choice once proceedings have commenced and many insurance companies are prepared to allow you to choose your own Solicitor.

LEGAL INSURANCE COVER (AFTER THE EVENT)


This has become a huge growth area for funding an accident claim. If you have an accident and wish to pursue an accident claim you can take out an after the event Legal Insurance policy. There are many different products available and you need to be careful as to what particular insurance product you choose. These types of policies will usually always indemnify you and pay for your opponents fees as well as your own medical fees and disbursements. Most of these policies are insured in themselves and therefore you do not have to pay any premium even if you lose your case. The Accident Line Protect policy referred to earlier is an example of one of these types of policies.

TRADITIONAL PRIVATE CLIENT RETAINER


This used to be the most common form of fee payment arrangement for funding an accident claim. Under this type you agree to pay for whatever work and professional services for the time spent on your case at an agreed hourly rate. If the case took say 20 hours to deal with at an hourly rate of £100 then you would have to pay £2,000.

In addition any expenses incurred would also have to be paid by you. Disbursements can include Court fees, medical fees, Barrister’s fees, travel expenses etc.

It is common practice to ask for monies on account to be paid in advance to cover the likely fees for funding an accident claim. Interim bills are regularly issued to cover costs and disbursements already incurred.

With this arrangement you take on the responsibility for our costs win or lose. If no Legal Insurance policy is taken out you will also be responsible for your opponent’s costs if you lose.

FUNDING THROUGH TRADE UNION


If you are a member of a trade union or any other society or organisation you should check to see if you may be entitled to the benefit of free advice and representation for funding an accident claim.

ALTERNATIVE INSURANCE FUNDING PRODUCTS


The Conditional Fee Agreement Regulations 2000 require Solicitors to inform, explain and advise clients on which particular method of financing the costs of litigation is appropriate and also to identify a Legal Insurance policy that covers your likely risks at a reasonable premium.

Information and advice can only be given in general terms about the different types of funding and alternative products. We are not insurance brokers and are not able to give thorough and detailed advice about all the options and in particular any insurance products available. If you do require expert and detailed comparative advice then please let us know and we will arrange for an independent insurance broker to contact you to discuss matters further. However the independent insurance broker may charge a small fee for providing such advice.

ALLIANZ CORNHILL LEGAL PROTECTION


We recommend certain policies for funding an accident claim. Our reasons for this are:

  1. The scheme is well established with no issue over recoverability.
  2. The policy covers your opponent’s costs and disbursements up to a maximum of £100,000.
  3. We rather than the insurance company retain professional judgement in the conduct of the case.
  4. The scheme is a delegated authority one rather than an individual risk assessment.
  5. Payment of the premium is deferred until settlement of the case.

VERBAL EXPLANATION


Before any Conditional “No Fees Ever” Agreement is entered into we generally must explain certain matters to you and deal with any questions or queries that you may have. In particular we must verbally explain:

  • Any liability you have to pay our costs in accordance with the agreement.
  • Your right and the procedure to seek assessment of our fees and expenses.
  • If any insurance covers the risk of an adverse costs order against you.
  • Details of the various methods of financing the costs and if they consider that a contract of insurance is appropriate their reasons for doing so and whether they have an interest in doing so.

SUMMARY


You need to consider and decide on which particular method of funding an accident claim is appropriate and also to identify a Legal Insurance policy that covers your likely costs risks at a reasonable premium. Information and advice can only be given in general terms about the different types of funding and alternative products. We are not insurance brokers and are not able to give thorough and detailed advice about all the options and in particular any insurance products available. If you do require expert and detailed comparative advice then please let us know and we will try and arrange for an independent insurance broker to contact you to discuss matters further. However the independent insurance broker may charge a small fee or a commission for providing such advice.

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