David Phillips & Partners Solicitors

David Phillips & Partners Solicitors

January 28, 2010 19:00 ET

Third Party Capture Tilts the Scales in Favour of Insurers

LIVERPOOL, UNITED KINGDOM--(Marketwire - Jan. 29, 2010) - Leading accident claims solicitors David Phillips and Partners are warning clients to be on their guard against a new practice known as 'Third Party Capture.' This involves insurers offering a settlement figure to accident victims before they have had the chance to seek independent legal advice.

This settlement will in most cases be much less than the injured party would normally expect to receive and is made possible by a loophole in the law, which allows insurance companies to approach claimants direct. Unlike solicitors (regulated by the Solicitor's Regulation Authority) and claims management companies (regulated by the Claims Regulator), insurance companies are not to be regulated by the FSA - who have adopted an 'industry led solution'. Many insurers will be able to phone or visit accident victims soon after the event and encourage them to agree to accepting a compensation settlement which could be much less than they deserve.

In one case, claimant Nicky Ridha was approached by her insurers, Elephant, shortly after being involved in an accident where her car was hit from behind. Ridha was offered £1,000 in what Elephant described as a "full and final settlement." Despite refusing this, Elephant upped the offer to £1,700 the following day and even sent a cheque for the amount. After consulting a solicitor, she was eventually awarded £12,500.

Stephen Higham, Partner at David Phillips and Partners comments:

"Insurance companies are using this legal loophole to potentially reduce the amount they have to pay out after an accident, making victims settle their claims for much less than they are worth."

"Accident victims should always get independent legal advice, no matter what the insurers say. By dealing direct, insurers are tilting the scales of justice in their favour, allowing them to deny liability, under-settle claims, or wrongly avoid them altogether. There's no doubt in my mind that this practice is harming the very people the law is designed to protect: innocent victims."

Accident claim solicitors David Phillips and Partners have offices across Britain and offer a free, no obligation consultation with accident victims. If they decide to take on a case, they offer a no fee service, with their costs recovered from the other side, which means the claimant will receive 100% of their compensation.


About David Phillips & Partners Solicitors:

  • Offices throughout the UK including London, Liverpool, Manchester and Birmingham.
  • Regulated by Solicitors' Regulation Authority (SRA Ref#: 73353).
  • Founded in 1982 and has over 25 years legal experience in the following specialised areas; criminal defence, accident claims, actions against the police, property conveyancing, wills and probate, matters involving children, motoring offences and prison law matters.

Contact Information

  • David Phillips and Partners Solicitors
    Stephen Higham
    0151 933 5525
    0151 922 3784 (FAX)
    202 Stanley Road Bootle L20 3EP