700 TAG writs

Following the decision of the Court of Appeal last May that the £310 referral fees paid by solicitors in each case under The Accident Group scheme were unlawful and therefore not recoverable, the insurance underwriters have instructed solicitors to serve draft particulars of claim on most of the 700 firms which they maintain negligently accepted ‘bogus or unwinnable’ claims. Lost claims cost the underwriters an average of £1,700 a case, wins were worth £300 each. The firms have been given three months to negotiate a settlement. Martin Cockx of Amelans says many firms are still making the same mistake by using claims farmers who receive ‘kick-backs’ by requiring panel solicitors to use specified insurance products and medical agencies. He warns that solicitors leave themselves open to challenge from liability insurers that a certain percentage of the ATE premium and medical fee should be disallowed on the grounds that they are not true premiums or medical fees.