Road Accident Solicitors Wary of Third Party Capture
It’s no surprise that road accident solicitors and insurance companies aren’t always the best of friends. But there is one practice upon which the two parties disagree so much that they cannot even agree on its name. The insurance companies call it third party assistance yet road accident solicitors refer to it as the much more sinister sounding third party capture.
This is the practice of insurance companies making direct contact with a third party who has a claim against one of their policy holders and offering to settle the claim. However, this contact is made very quickly after the accident happening, before legal advice has been sought. Indeed, some claimants have reported being visited at home within hours of the accident.
Road accident solicitors have protested against this practice for years now, arguing that legal advice is a must in such situations. They also make the very valid point that insurers face an impossible conflict of interest in settling the claim. This is because they will be trying to keep their own payouts low whilst claiming to make reasonable offers to claimants.
Despite the protestations of road accident solicitors, insurers state that the compensation paid out this way is no less than what is paid on the advice of a solicitor. They also claim that in paying the money quickly and with a minimum of hassle they are providing a good service to the claimant. This is no good if the amount paid is unfair, claim road accident solicitors.
Normally, actions such as third party assistance/capture would be governed by the stipulations of the 2006 Compensation Act which regulates claims management activities. However, insurers are already regulated by the FSA.
To attempt to legitimise the practice and dispel some of the concerns that surround it, the Association of British Insurers are working to introduce a voluntary code of practice relating to the practice. It will set out how insurers should and shouldn’t contact victims and how to make sure victims are aware of their right to independent legal advice. No action will be taken against insurance companies which do not follow the code. But the FSA claims is will be more concerned with investigating practices of companies which do no sign up. However, road accident solicitors remain unsure and are certain to continue keeping an eye on the practice.
