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Compensation culture: Law firm warns victims 'time is running out'

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A major player in the no-win, no-fee compensation claim market has warned the public that time is running out for them to make claims if they have suffered an accident which was the fault of someone else.

Proposed changes will have a great effect on accident victims' claims, they say, and encourage those who think they may have a claim to step forward sooner rather than later.

The changes to the law on no-win, no-fee legal representation are included in the controversial Legal Aid, Sentencing and Punishment of Offenders Bill, which is set to become statute law this spring.

The plans include abolishing the success fee which is claimed by lawyers representing the winning side from the insurers representing the other side.

This success fee can amount to up to 100% of the compensation awarded in a case. If removed, the cost of bringing a claim would need to come out of the compensation awarded, making such claims much less financially attractive.

However, many commentators observe that despite the changes, genuine accident claims will still proceed, albeit that they may be less lucrative than before.

Rob Bhopal is Managing Director of one firm in the sector, Claim Today Solicitors. He attacked the government's proposals.

"The Government has proposed changing no-win, no-fee arrangements in an attempt to stem what it calls a compensation culture, but with only around 25% of accident victims ever making a claim they're attacking a problem that doesn't exist," he said.

"The only beneficiaries from the changes will be big insurance companies and rogue employers who neglect health and safety for their workers."

"In future many people with genuine claims for injuries caused by employers who owe them a duty of care will have no chance of seeking redress," he added.

The Government hopes to put an end to what David Cameron called the 'health and safety monster': a term believed to describe the burgeoning sector in accident prevention and safety rules.

This description attracted criticism from those within the industry who argue that legislation and proper enforcement protects employees and members of the public from shoddy work practice and neglect of duty of care.

Related links:

Read more on the story (Press Association)

No-win, no-fee agreements (FindLaw)

Find solicitors throughout the UK (FindLaw)

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