Across the country, there is growing concern amongst those with insurance policies over being handed the bare minimum in terms of pay-outs. This practice is spreading throughout the UK, with many insurance companies who find that the number of claims that are being made by their customers in the event of accidents is growing, and as a way of cutting the cost, they may be looking to pay less in lump sums.
Legal firms like First4lawyers have expressed grave concern about this move, as it can discourage people from taking out any form of cover, even if it’s essential like car insurance. Known by some in the legal industry as “low-ball” offers, they are becoming more common, which may come at the cost of the policyholder, who may not receive enough money from their insurer if they need a pay-out to even cover the basic costs.
People involved in accidents are more likely to claim from their insurer now than at any other time, not least because of the costs involved, but according to personal injury lawyer Karl Tonks, claimants are unfairly shouldering much of the blame for the rise in the cost of all types of insurance.
“It doesn’t seem right that claimants are being blamed for insurance becoming more expensive, because at the same time, their customers are paying through the nose for cover and being given little financial help when they need it”, he said.
New legislation in the form of the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Bill, expected to become law next year, could make it even harder for people who approach the likes of Medicalsolicitors.com for help in making claims. As a result, it’s possible that more claims will be settled earlier, with those being paid given much less than they may be entitled to.