Jackson report will cause surge of spurious claims

January 21st, 2010 admin

Specialist legal expenses provider ARAG has warned that access to justice will be damaged and frivolous claims will surge due to one way cost-shifting and the abolition of ATE insurance and Success Fee. Business development and marketing director Paul Hurley has said that the have-a-go culture will be encouraged by shifting costs as the client stands to lose nothing. Hurley warned that liability insurers would be flooded with claims, and that this would negatively affect the timescales in Ministry of Justice reforms due to be implemented in April. He went on to state his disappointment with LJ Jackson, who failed to fully engage with ATE providers. Following the withdrawal of Legal Aid, many insurers who filled the gap went bust or incurred substantial losses and withdrew…


Originally posted on InsuranceDaily

 
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