The disappearing Claims Management Companies

I was pleased to learn that over 1,000 Claims Management Companies (CMCs) left the personal injury market in the last year according to the Claims Management Regulator. The Industry Turnover was down by 37% as well.

This is good news for people injured in accidents as it means that they are less likely to be directed to solicitors previously chosen by the Claims Managers and will instead take advice from local and reputable solicitors who will provide them with a good level of service and they will get to meet the person who is representing them.

It will also mean that we will see fewer shop front-type businesses in our suburbs offering to help you after your accident. How long will I have to chuckle at the large figure of “Mr Compensator” on my drive into work? Hopefully we will receive less of those annoying texts and emails inviting us to claim for accidents we didn’t have as well.

I always wondered why anyone would want to appoint a CMC after an accident anyway. Typically, they would arrange for the injured person’s car to be repaired at a garage of their choice, supply a hire car and then recommend a solicitor of their choice. Often, the CMCs received commissions from all those organisations and still charged the injured person for their services. I know one local CMC used to instruct solicitors in Liverpool to deal with their Sheffield-based clients’ injuries. All those tasks would have been taken on by the driver’s insurers anyway and at no cost! In reality, the ban on referral fees has seen the demise of many CMCs.

This is good news for anyone injured in a Road Traffic Accident and the specialist personal injury solicitors who provide a good service to their clients. We will be happy to advise you, your friends or relatives about any type of injury claim if you call us on 0114 218 4049 or email me at jonathan.stittle@tayloremmet.co.uk

I hope you enjoy your weekend safe in the knowledge that you won’t need your passport to visit Scotland in future

Jonathan

 

 

Article written by

Jonathan Stittle

Our Personal Injury partner at Taylor&Emmet LLP. 0114 218 4049.

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