Friday, 9 September 2011

Government announce plans to ban referral fees

The Government has today announced plans to implement a ban on referral fees in personal injury claims.

The announcement has been welcomed by the Association of British Insurers who say that the practice of paying referral fees in exchange for personal injury claims has led to rising insurance premiums.

Aswell as hoping that the changes will bring down insurance premiums, the Government see the ban as a step towards ending the so called 'compensation culture'.

The move has however come in for criticism from lawyers who are concerned about the impact that the ban will have on the profession, particularly at a time when they are already facing the introduction of Alternative Business Structures.

As of yet there is no timescale in place for implementing the ban.

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