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

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.

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