May 31

Costs Judges Slate Jackson Reforms

Posted in After The Event Insurance, The Jackson Report

I’m not sure why they didn’t come out with this before the Ministry of Justice announced the planned reforms but anyway, at last people are agreeing with what we have been saying all along. The Jackson reforms are a sledgehammer to crack a nut and will result in tonnes of satellite litigation for the courts just at a time when all of the challenges have been dealt with.

Master Campbell, Master Haworth and Master Leonard – all Senior High Court costs Masters – have written a long report analysing the proposed changes. Whilst they agree with some of them, they disagree with most and, it has to be said, they are at the coal face so know the issues more than anyone else. If they don’t like them, the Government has to take notice. If the Ministry of Justice tries to push them through and ride roughshod over these opinions then I can see trouble ahead.

I won’t go into detail here as their comments have been set out nicely here [ http://claimscouncil.org/news/publications ] but as far as After the Event Insurance is concerned, they think it should stay, it should be recoverable from the Defendant but it should be capped to avoid huge premiums being bought last minute by solicitors. Which is is exactly what we said should happen….

Box Legal Limited: After the Event Insurance Providers
www.boxlegal.co.uk  | daniel@boxlegal.co.uk | 0870 766 9997

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May 26

That’s a wrap

Posted in After The Event Insurance, General, Personal Injury Claims, Solicitors

Is that the correct spelling? Hopefully, people won’t think I am talking about sandwiches here.

Yes it is reference to our Animation competition which we have now launched to the world. We have set up a dedicated website (www.boxlegalfilm.co.uk)  where you can see the rules, ask questions and (best of all) submit your entries. Don’t forget the closing date is the end of July.

We want to redefine the corporate video with a fresh approach and a good dose of humour. Looks like we have trodden on a few toes though – we have already upset an animation company who say we are simply trying to get some animation done on the cheap. Well that’s not entirely true – the prize fund is £2250 and we had to invest in a new website – but the point is we want to get the bedroom animator (not sure that sounds quite right) to show us what he/she can do rather than a company who (we suspect) won’t be half as creative.

Anyway, we hope that the challenge will produce some clever/funny/wacky/bizarre entries about, er, After the Event Insurance. Should be interesting….

Box Legal Limited: After the Event Insurance Providers
www.boxlegal.co.uk  | daniel@boxlegal.co.uk | 0870 766 9997

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May 23

Fraudulant Claims

Posted in After The Event Insurance, General, Personal Injury Claims, Road Accidents

We know they are out there. We have all heard about the fake accidents and extra passengers.

If a claimant is found to be fraudulent then he/she is in big trouble. First of course, there are the legal costs. If you make up a claim and are found out, any After the Event Insurance policy you have won’t be valid so you will be facing many thousands of pounds in defendant’s costs and disbursements. In addition, most Conditional Fee Agreements state that, in the event of a finding of fraud, you will also have to pay your own solicitor’s charges.

Ok – so what? Are fraudulent claimants likely to pay up? Well no. They often disappear – after all it is common for them to use a fake address.

Worse for the fraudster however is the fact that they have committed a criminal offence. If they are caught, the police (if they can be bothered that is) could arrest them for fraud and deception.

So how are the defendant insurers reacting? Well they are being their usual crafty selves. First, they are (quite rightly) setting up fraud teams to investigate these criminals. Often the fraudsters aren’t just doing this once but are serial offenders and so, if the defendants can stop them, they are going to save many thousands of pounds.

The problem is, the defendant insurers are now going too far. We have evidence which suggests that it is now common place for fraud to alleged in defences pleaded by defendant insurer solicitors. Virtually standard phrases are being used and defendant solicitors are telling claimant solicitors that they must (a) tell their clients of the consequences of being found to be fraudulent and (b) tell the client’s After the Event Insurer.

What is the effect of this? Well, some claimants get scared. They don’t want to be left facing a massive bill and so, even if they are innocent, they cease claiming. The problem is, we understand some After the Event Insurers are then taking this action to be evidence of a fraud and so won’t pay out for any costs. We also believe that ATE Insurers are checking defences very carefully and, if a claimant loses, they point to any allegation of fraud and tell the claimant that, in view of the allegation and the fact that they lost their claim, they won’t pay out. Now this is not where there has been a finding of fraud, just where a case has been lost on the facts.

So you see, the defendant insurer tactics are backfiring somewhat. By alleging fraud across most defences, they are giving ATE insurers ammunition to refuse claims. If a claim is refused of course, the defendant insurer doesn’t get paid costs. So they are shooting themselves in the foot here.

What do our underwriters do? Well they ignore these shenanigans. Any allegation of fraud is seen as bravado. The underwriters we use wait to see what the Judge decides. If the Judge makes a finding of fraud on the facts then they don’t pay out. If there is no finding of fraud then they do pay. Life is so much simpler when you don’t play games.

Box Legal Limited: After the Event Insurance Providers
www.boxlegal.co.uk  | daniel@boxlegal.co.uk | 0870 766 9997

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May 17

Is the ABI Starting to Unravel?

Posted in After The Event Insurance, General, Personal Injury Claims, The Jackson Report

The Association of British Insurers (ABI) may be starting to unravel…. and all because of the Jackson reforms.

The problem they have is the nature of insurance has changed. It used to be that people paid a premium and then the insurer sat back and hoped that no one made a claim.

Now, with referral fees, claims can be valuable – to some.

DAS has already left the ABI and now Elite (an After the Event Insurer) looks set to follow. Clearly, ATE Insurers are going to suffer when the Jackson reforms come in and so their interests are diametrically opposed to the mainstream insurers who are very keen for the rules to be introduced.

The problem is, referral fees are also going to be looked at – and this will cause further friction within the membership. Some of the mainstream insurers now sell personal injury claims to the highest bidder and so actively go after people who have had accidents. This doesn’t make them popular with insurers who haven’t adopted this approach.

The cracks are appearing which I suspect is good news for the man in the street. The ABI has proved to be a powerful lobby-er whose persuasive powers have swayed the Government to dance to their tune.

Let’s hope the Pied piper is silenced sometime soon.

Box Legal Limited: After the Event Insurance Providers
www.boxlegal.co.uk  | daniel@boxlegal.co.uk | 0870 766 9997

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May 13

We are going into the film business

Posted in After The Event Insurance, General, Solicitors, The Jackson Report

Of course you knew that already. Obviously, a company full of lawyers selling After the Event Insurance is bound to start making movies – it’s a logical step after all.

Well, the thing is, we are developing a completely new website and will be using short films to get the message across. The problem of course is that we know nothing about making ‘webinars’ etc so instead we are going to hold a competition and get the YouTube generation to come up with some new takes on the corporate video.

The first competition will be starting next week and will run until the end of July. We are offering a total prize fund of £2250 and are looking for a 2 minute stop/go animation explaining what After the Event Insurance is and the effect of the Jackson Report.  So we hope some students out there will be entering with the hope of paying for some of those tuition fees.

I shall publish the rules and rough script next week so watch this er, space. 

Box Legal Limited: After the Event Insurance Providers
www.boxlegal.co.uk  | daniel@boxlegal.co.uk | 0870 766 9997

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May 10

Referral Fees and Before the Event Insurance

Posted in After The Event Insurance, Personal Injury Claims, Road Accidents, Solicitors, The Jackson Report

Old Ken Clarke was all for Before the Event (BTE) Insurance. No wonder the Government has decided to leave referral fees alone.

Let me explain.

BTE Insurance, as you no doubt are aware, is an annual policy attached to motor or household insurance policies which covers the policy holder (and often their family) in the event of a legal dispute. If for example someone has a policy with their motor insurance, it would have cost them about £25 to £40. For the next 12 months they then have legal assistance and all of their legal fees paid for if they need to make or defend a legal claim.

So, let’s say they have an accident which wasn’t their fault. They contact their BTE insurance provider who places them with a solicitor. The policy holder will be protected against legal costs if they lose and if they win, the solicitor recovers their charges from the defendant. Sound familiar? Well it is exactly what happens with After the Event Insurance save for one significant fact: The BTE insurer will charge the solicitor a referral fee for getting the case.

In other words, the BTE provider sells the case to the solicitor, for up to £750! So instead of the BTE policy actually being a liabilty for the BTE Insurer, it is in fact an asset – they want clients to claim on them as it makes them money. What is more, the BTE provider insists (often with a nod and a wink) that the solicitor doesn’t claim on the policy. You know the sort of thing – if they did claim, it would be the last case they received or similar strong arm tactics.

So the BTE provider is receiving up to £40 for each policy they sell plus £750 for each personal injury claim. Nice.

Let’s compare this to After the Event Insurance bought er, after an accident has happened. Motor ATE Policies typically cost around £350 although the cost to clients post Jackson is likely to be much less, around £150. How many car accidents have you had in the last 10 years? Me – none. The average person – one. So, in 10 years, if you were buying a BTE policy just in case, you would have shelled out around £400.  Instead, if you simply bought an ATE Insurance policy when the accident happened, it would most likely cost just £150 for you to have exactly the same cover.

So BTE isn’t the answer. Not only are BTE Insurers flogging cases to the highest bidder, they are charging clients far too much. After the Event Insurance is much more efficient and cost effective. You only buy it when you need it, not each and every year just in case.

Ken Clarke is wrong. BTE Insurance is not the holy grail but a licence to print money. Tick the ‘No’ to legal insurance box on your motor quote and save a packet.

Box Legal Limited: After the Event Insurance Providers
www.boxlegal.co.uk  | daniel@boxlegal.co.uk | 0870 766 9997

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May 6

Part 36 offers and ATE Insurance

Posted in After The Event Insurance, General, Personal Injury Claims, Solicitors, The Jackson Report

I have been asked to explain how After the Event Insurance works with Part 36 offers, so here goes.

As you will no doubt be aware, a Part 36 offer is an offer to settle made by either party in an attempt to conclude a claim early. They are most often made by defendants and can be in relation to liability or quantum or indeed both.

The rules state that, if a defendant makes a Part 36 offer and the claimant decides not to accept it, if they go to trial and less is awarded by a judge or if later the claimant is forced to accept less than was offered, the claimant has to pay the defendant’s legal costs (and disbursements) incurred from the date the offer was made until the end of the case. What is more, the claimant also has to pay his/her own legal costs (so basically any disbursements if acting under a CFA) from the offer date as well, as these cannot be recovered from the defendant.

So this is where After the Event insurance comes in. You see the problem solicitors have is that they are dammed if they do and dammed if they don’t. If they tell a client to accept an offer, they get hassle from the client who thinks the solicitor isn’t getting them the right settlement and just wants to get their costs. If they tell the client to carry on and then fail to beat the offer, the client says they should have advised them to accept. So you see, ATE Insurance is as much to protect the solicitor here as the client. With our After the Event insurance in place, if a solicitor advises the client to continue, but then the offer isn’t beaten, the insurance will kick in to cover the adverse costs and disbursements. Without it, the client has to pay these out of their damages OR (as is often the case we hear) they create such a stink that the solicitor ends up paying them.

Well at least this is all changing post-Jackson I hear you cry? Not a bit of it. Exactly the same rules will apply. So which is it? Protect your client from costs and yourself from accusations of bad advice or take a punt on each and every case. Bit like driving without a seat belt. Daft.

Box Legal Limited: After the Event Insurance Providers
www.boxlegal.co.uk  | daniel@boxlegal.co.uk | 0870 766 9997

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May 3

Not about After the Event Insurance but a Word of Warning

Posted in General, Road Accidents, Solicitors

Another good short week? Enjoy the wedding?

I didn’t. Had a bit of an incident which soured things a little.

Now if you read my blog regularly, you might begin to think that I am a used car salesman on the side but it’s just coincidence. We bought a 7 seater to accommodate all of the children plus their assorted friends recently so last week, I put our Mercedes M class up for sale in Autotrader.

I got a couple of calls, and one person wanted to come and see it on Tuesday night. Problem was, I was out playing football but we finally managed to shift the times and ‘Akesh’ and his friend were there when I got home. I proceeded to show them around the car but refused to let them drive it as they obviously weren’t insured. They checked all of the paperwork  – chassis number against the V5 etc, even that the chassis wasn’t bent at all.

They said they had seen one other car that night but the owner only had one key so they were suspicious. Did I have two keys? Of course – so I locked the car and got the other one. They then wanted to check that the central locking was working with the metal part of the fob (there is a small emergency key which is hidden in the Mercedes electrical fob) but it didn’t seem to work.

They then wanted to check the spare tyre was in the boot so I opened it and lent in. Next thing I know, the boot lid has come down on my head and I am somewhat stunned. ‘Akesh’ said he was looking for the lock in the boot and hadn’t realised I was going to lean in. I wasn’t feeling all that great – but ‘Akesh’ said he was interested in the car and just wanted to do an HPI credit check on it and would call me in the morning. With that, he locked the car, handed me back the key and I went back in side to look at my head in the mirror (cut and massive raised bruise).

So that was that. Except, in the morning I woke up and the car had gone. I then looked at the keys and realised they had swapped one of them after cracking me on the head. It was pretty much identical to our keys and not obvious in the dark.

So there you have it. I am now dealing with my insurers and the police who incidentally, despite an assault and theft of an expensive car, couldn’t be less interested.

I have since been told that this same theft modus operandi was featured on the BBC’s ‘The Real Hustle’.

Shame I hadn’t seen it. I suspect ’Akesh’ and his mate have.

Box Legal Limited: After the Event Insurance Providers
www.boxlegal.co.uk  | daniel@boxlegal.co.uk | 0870 766 9997

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