It’s no surprise that road accident solicitors and insurance companies aren’t always the best of friends. But there is one practice upon which the two parties disagree so much that they cannot even agree on its name. Insurance companies will refer to is as third party assistance whilst road accident solicitors go with the more fear-inducing third party capture.

Whatever its name, it is the practice of insurers directly contacting a third party with a claim against one of its policy holders making an offer of settlement. The important point is that the claimant is contacted very promptly, before having sought legal advice. Indeed, some claimants have reported being visited at home within hours of the accident.

For a long time, road accident solicitors have expressed their concern about the practice, arguing that seeking legal advice is important. They also claim, very convincingly, that in offering to settle the claim, insurers face an impossible conflict of interest. This is because they will be trying to keep their own payouts low whilst claiming to make reasonable offers to claimants.

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 state that dealing with payments this way is quicker. Not so if the payment is unfair, argue road accident solicitors.

Usually, actions such as third party capture/assistance would be regulated by the Compensation Act 2006 which regulates claims management activities. However, insurers are already regulated by the FSA.

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 stipulate how victims ought to be contacted and that insurers must make victims aware of their right to independent legal advice. No action will be taken against insurance companies which do not follow the code. But the FSA says it will be investigating insurers who do not sign up to the code. However, road accident solicitors remain unsure and are certain to continue keeping an eye on the practice.

Thankfully, the majority of us do not often require the aid of road accident solicitors. But accidents do happen, so imagine this. You’re minding your own business driving along when another driver hits the back of your car. You weren’t to blame for the accident. So, as the law states that you must, you both stop and swap contact and insurance details and you go on your way planning to contact your insurers later on in the day.

Then, also imagine that at home, before you have even found the time to call your insurers, a representative from the other driver’s insurance company knocks on your door. He or she then offers to write you a cheque on the spot in compensation for your injuries and losses. This is great you think!

However, road accident solicitors might advise you to stop and reflect on whether this is such a great deal after all. The practice of insurance companies contacting the claimant offering to settle their claim right away is becoming increasingly common. When insurers do this it is usually very soon after the accident. There have even been examples of representatives of insurance companies arriving at the scene of the accident offering to resolve claims there and then.

Although all of this may sound like efficient and prompt service, road accident solicitors warn consumers about the practice. Consider why the insurance companies would be so keen to settle claims so quickly. Think about why an honest insurer would want to compensate a driver for their injuries before they had even seen a doctor or received legal advice.

Many road accident solicitors and personal injury lawyer associations are warning that companies are actually trying to save themselves some money whilst claiming to provide efficient service. This is because, should they agree to the proposed amount of compensation, the insurance company requires the claimant to sign a form stating that they accept the offer in full and final settlement of the claim. In other words, once that form is signed the claim is legal concluded and regardless of what happens there is no going back and claiming any further money, even with the help of road accident solicitors.

Consumers therefore run the risk of accepting a claim worth less than what they’re entitled to and what they may need. It is well known that the full extent of injuries may take several days or even weeks to be clear. Compensation is partly intended to pay for ongoing treatment of accident victims’ injuries, so a full understanding of the extent of the injuries is important before accepting payment. Road accident solicitors therefore advice that claimants take both legal and medical advice before accepting any offer of settlement.

The Association of British Insurers has created a voluntary code of practice to try to protect consumers from being left out of pocket by this practice. It dictates that insurers should make a claimant aware of their right to independent legal advice when offering to settle their claim. It also suggests that making initial contact by letter or telephone rather than in person at a claimant’s address avoids intimidation.

Most of us don’t come into contact with road accident solicitors very often and we all hope we will never need to. All the same, accidents do happen, so imagine this. You’re going about your business driving in your car when you’re hit in the rear by another car. You weren’t to blame for the accident. As you are legally obliged to, you stop and exchange insurance details and go about getting home, planning to contact your insurance company later in the day.

Then, also imagine that at home, before you have even found the time to call your insurers, a representative from the other driver’s insurance company knocks on your door. He or she then offers to write you a cheque on the spot in compensation for your injuries and losses. So you think, this is super!

However, road accident solicitors might advise you to stop and reflect on whether this is such a great deal after all. More and more insurance companies are contacting the claimant offering to settle their claim right away. It is no accident that insurers usually do this very swiftly after the accident. There have even been some reports of insurance company employees making offers of settlements at the very scene of the accident.

Of course, this all seems like very efficient service on the insurance companies’ parts, but road accident solicitors warn against the practice. Think about the reasons why insurance companies would want claims settled so quickly. Think about why an honest insurer would want to compensate a driver for their injuries before they had even seen a doctor or received legal advice.

Many road accident solicitors and personal injury lawyer associations are warning that companies are actually trying to save themselves some money whilst claiming to provide efficient service. This is because, should they agree to the proposed amount of compensation, the insurance company requires the claimant to sign a form stating that they accept the offer in full and final settlement of the claim. In other words, once that form is signed the claim is legal concluded and regardless of what happens there is no going back and claiming any further money, even with the help of road accident solicitors.

Consumers therefore run the risk of accepting a claim worth less than what they’re entitled to and what they may need. After a road accident it is not uncommon for the full extent of injuries to become clear after several days or even weeks. It is important to remember that amongst other things, compensation money is intended to pay for any ongoing treatment that may be required, so it is important to understand the injuries before accepting a settlement. Road accident solicitors therefore advise that consumers should seek legal and medical advice before agreeing to any settlement.

The Association of British Insurers has created a voluntary code of practice to try to protect consumers from being left out of pocket by this practice. It states that insurers attempting to settle claims early with the claimant must make sure that he or she is aware of their right to independent legal advice. It also suggests that making initial contact by letter or telephone rather than in person at a claimant’s address avoids intimidation.

Naturally, road accident solicitors and insurers don’t always see eye to eye. But there is one practice that they disagree on to such an extent that they cannot even agree on what to call it. Insurers like to call it third party assistance, but road accident solicitors prefer the more scary sounding third party capture.

Whatever its name, it is the practice of insurers directly contacting a third party with a claim against one of its policy holders making an offer of settlement.  However, this contact always takes place very promptly, before legal advice has been sought. Indeed, some claimants have reported being visited at home within hours of the accident.

For a long time, road accident solicitors have expressed their concern about the practice, arguing that seeking legal advice is important. They also argue, convincingly, that an insurer offering to settle a claim faces a serious conflict of interest. This is because they will be trying to keep their own payouts low whilst claiming to make reasonable offers to claimants.

Despite the protestations of road accident solicitors, insurers state that the compensation paid out this way is no less than what is paid on the advice of a solicitor. They also claim that paying compensation in this way is quicker and less hassle and therefore preferable for the claimant. But it’s not such a good deal if the settlement is unfair, according to road accident solicitors.

One might expect third party capture/assistance to be included in the regulations of the 2006 Compensation Act. However, insurance companies are actually already regulated by the FSA.

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 stipulate how victims ought to be contacted and that insurers must make victims aware of their right to independent legal advice. No action will be taken against insurance companies which do not follow the code. But the FSA says it will be investigating insurers who do not sign up to the code. However, road accident solicitors remain unsure and are certain to continue keeping an eye on the practice.