Legal fees 'must be lower' when settling personal injury claims

Date: 24/2/2012

The Association of British Insurers (ABI) is calling for lower legal fees for those settling personal injury claims after a motoring accident.

According to the organisation, consumers are collectively paying £2.4 million a day in legal fees through motor insurance premiums.

This is equal to £1,666 a minute - a figure the group believes is far too high.

Speaking at a conference called The Future of Casualty Claims, ABI's Head of Motor and Liability Insurance James Dalton said the British compensation system is "riddled with disproportionate and excessive legal costs."

"This means higher insurance costs for motorists and businesses and a heavy cost burden on local authorities and the NHS," he added.

Mr Dalton called for the government to introduce reforms that force solicitors to fix their fees.

This comes just after prime minister David Cameron backed an initiative to try and reduce the number of whiplash claims made by motorists.

Payouts for these injuries are driving up the cost of car insurance premiums and cost the industry about £2 billion a year.

Posted by Mary Treen