A package of reforms have taken effect following the Legal Aid, Sentencing and Punishment of Offenders Act 2012 to tackle the high cost of premiums which have affected not just drivers but also school, groups and authorities trying to insure themselves so they can stage events and activities. They include:

• no win, no fee law suits transformed so lawyers will no longer be able to double their fees if they win, at the expense of defendants and their insurers.
• the banning of “referral fees” paid between lawyers, insurers, claims firms, garages and others for profitable claims. Recommend a friend deals will also be banned.
• claims firms banned from offering upfront cash incentives or other gifts to people who bring claims to them.

The changes to conditional fee agreements and damages-based agreements are explained on the Justice site and illustrated below.

Created by no win no fee claims specialist National Accident Helpline.