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Dogs are known as "man's best friend" and for good reason.

They are loyal companions, who can also help alleviate some of their owner's health problems.

Is this the end of “No Win No Fee” claims?

No Win No Fee claims with a “success fee” for the lawyer taking the risk came into force in 2000. But with a recent change to regulations governing the compensation for the lawyer in such cases has made many argue that the death knell of such claims has been rung.

No Win No Fee lawyers step in when a claimant does not have the finances to pay the hefty lawyer fees upfront. The idea was to make legal recourse available to all who have been wronged, regardless of their financial standing. As per the older regulations, the lawyer could charge a success fee up 100% of the legal fees otherwise charged.

This set up where the lawyer could get a fee equivalent to the legal expenses incurred meant that the lawyer tried to inflate the costs as much as possible. She would call in the most expensive experts available, more experts than he would have called otherwise and would simply pile on various miscellaneous charges just to increase the legal fee as much as possible.

The other change that has happened over the years is that No Win No Fee lawyers approach anyone who has met with an accident and propose to him to file a claim. The claimant would rarely try to find the cheapest option as he has to pay nothing from his own pocket, and would gladly agree to put up the claim. Some of the lawyers even had an arrangement with insurance agents and hospital wardens to inform them in case an accident case comes in. Now, the accident victim would receive a cold call from the lawyer offering solicitation.


 

     

 

 

 

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All this has resulted in number claims being filed going up over the last 10 years, even though the number of accidents have actually decreased. To add on to that the claim values have skyrocketed since the introduction of No Win No Fee claims. As a cascading result, the costs of accident insurance have gone up as well.

In response to all the above problems, the regulation governing the success fee paid to No Win No Fee lawyers have been changed. Now these cannot be over 25% of the claim amount. The proponents of this change claim that this will not only reduce the legal fees being inflated, but also reduce the premiums paid on accident insurance.

Many experts seem to believe that this would mean that lawyers would no more take cases where the claim amount is small, as the compensation they would be rewarded will be less. Also that the reduced success fee is not good enough to cover the risks the lawyer takes, and the number of claims would fall drastically. Only time would tell if that is true.

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