The cost of motor insurance was investigated in a report published on 11th March 2011by the House of Commons Transport Committee.  The report found that over 40% of personal injury lawyers pay referral fees to receive work from insurers or claims management firms.  These range on average from £200.00 to £1,000.00 per referral.

The transport committee found that consumers “are largely unaware of how much money moves around the insurance industry when they make a claim, particularly if they were not at fault for the accident.  We suspect consumers are often confused about why their insurer insists that they use a specific vehicle repairer or solicitor and about whether they are entitled to make their own choice”.

The committee recommends that insurers should publish on their websites a list of the firms with which they have referral arrangements, an indication of the level of the fees paid, and a clear explanation of how referral arrangements work and their purpose.

Ridley & Hall’s specialist personal injury team does not pay referral fees to anyone.  We agree with the transport committee that there must be greater transparency – so that when accident victims are at their most vulnerable they can feel able to choose their solicitor and not be pushed towards a firm that is paying a “backhander” for the work.

If you have been involved in an accident and would like to find out if you are entitled to claim compensation, please give Janet Watson a call for a no obligation chat on 01484 538421.

Janet Watson is a Senior Legal Executive specialising in personal injury law. She is a member of      the Association of Personal Injury Lawyers  and is committed to achieving for clients maximum damages taking into account the needs of the particular individual.