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 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.

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