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Third Party Capture/Assistance From The Point Of View Of Road Accident Solicitors

Naturally, road accident solicitors and insurers don’t always see eye to eye. But there is one practice upon which the two parties disagree so much that they cannot even agree on its name. Insurers like to call it third party assistance, but road accident solicitors prefer the more scary sounding third party capture.

This is the practice of insurance companies making direct contact with a third party who has a claim against one of their policy holders and offering to settle the claim.  However, this contact always takes place very promptly, before legal advice has been sought. Some claimants even report being visited at home within hours of the incident.

Road accident solicitors have protested against this practice for years now, arguing that legal advice is a must in such situations. They also argue, convincingly, that an insurer offering to settle a claim faces a serious conflict of interest. Wanting to keep their own payout costs low and claiming to offer fair compensation to claimants are surely mutually exclusive.

Much to the disbelief of road accident solicitors, insurance companies claim that the compensation paid out this way is not lower than the settlements advised by lawyers. They also claim that paying compensation in this way is quicker and less hassle and therefore preferable for the claimant. Not so if the payment is unfair, argue road accident solicitors.

One might expect third party capture/assistance to be included in the regulations of the 2006 Compensation Act. However, insurers are already regulated by the Financial Services Authority.

To attempt to legitimise the practice and dispel some of the concerns that surround it, the Association of British Insurers are working to introduce a voluntary code of practice relating to the practice. It will give details of appropriate ways of contacting victims and how insurers must make victims aware of their right to legal advice. There will be no ‘punishments’ for insurers who do not follow this code. But the FSA claims is will be more concerned with investigating practices of companies which do no sign up. Road accident solicitors are not confident that this is enough and will be closely following the practice.