The publication on Friday of Lord Young’s review of health and safety laws and the alleged ‘compensation culture’ once again brings the personal injury sector into the spotlight.

This provides an opportunity for the sector to take a proper look at itself, acknowledge where improvements are needed and adopt a more robust approach to defending its reputation.

For too long, the sector has allowed cowboy companies to fuel wild misperceptions about a rampant compensation culture. This has led to a skewing of the debate where solicitors, claims management companies and pooled marketing services have become the centre of attention instead of the consumer’s genuine right to justice.

First, let’s look at the problem of the small minority of disreputable practices that perpetuate tabloid-driven myths. Clearly, unethical elements should not be allowed to tarnish the reputation of those that provide valuable services to society.

Furthermore, the reputable players have a responsibility to help drive out malpractice.

That is why National Accident Helpline (NAH) reports any unethical or fraudulent activity we hear about to the Claims Management Regulation Unit, including egregious marketing tactics such as cold calling or sending texts that indiscriminately dangle the carrot of substantial rewards to people. We endorse Lord Young’s criticism of those who offer cash incentives to consumers as a means of generating claims.

On a wider level, it is time to start dispelling myths more effectively and demonstrate that the personal injury sector is an invaluable tool for people who would not know where to turn. Citing the facts has been in too short supply but there is plenty of data that can be deployed to bust commonly-held misperceptions about the alleged compensation culture in Britain.

As the Claims Management Regulation Unit has made clear, the evidence suggests that the vast majority of claims management companies and not-for-profit bodies have helped more people to achieve redress and access to justice without fuelling a ‘compensation culture.’ According to the DWP Compensation Recovery Unit, employer liability claims have fallen 69% between 2000 and 2010, from 219,183 to 78,744. Clinical negligence and public liability claims have also dropped.

NAH’s own recent report found that, in reality, only a small fraction of people are aware of their rights to seek redress for injuries caused by someone else’s negligence. Confusion about personal injury claims is almost universal, with only 6% saying they are confident they know their legal rights, while eight out of ten perceive significant obstacles to seeking redress for a personal injury. Perhaps the most significant finding was that there is a major social stigma associated with personal injury compensation: more than half of people consider that those who have sought compensation for their injuries are ‘working’ the system.

To build consumer confidence in the sector and help fight this common perception, we need to get wiser to the familiar narratives trotted out by the insurers and start rebutting the commonly held myths with facts and figures.

Screening services act as the first port of call for those enquiring about their rights to compensation. Of an expected 195,000 enquiries to NAH this year, approximately two-thirds will be ‘weeded out’ by legally trained staff, meaning that only those with a genuine claim are referred to the panel. The net effect is to increase the quality of cases for solicitors and ultimately to reduce the administrative burden on the legal system.

Moreover, on top of myth busting, the sector needs to make a concerted, long-term effort to serve the public by providing transparent, effective access to justice and raising consumer standards.

That is why NAH has adopted a front-foot approach by launching a sector-leading Customer Charter, which takes our commitment to our customers well beyond the current regulatory requirements.

The charter, which contains a seven-point Solicitor Promise, is part of NAH’s campaign to champion the rights of the consumer – often the underdog in these situations. It provides a better model for both the panel and the public, including:

  • Transparency – no deduction of compensation by the panel
  • Simplicity – a simple referral system that endeavours to pair up local claims with local solicitors rather than dispersing claims across the country
  • Clarity – solicitors will provide clear, honest and impartial advice
  • Fairness –no ‘cherry picking’ of the most lucrative cases and no ‘selling on’ claims to the highest bidder

The charter has been well received by our panel and will help to improve standards across the industry. At its heart, it is about promoting fair, simple and honest access to justice.

We know that there are still significant barriers to justice – the majority of those with a legitimate right to seek compensation still do not action their right – but collectively the sector must work harder to remove these obstacles. Setting the record straight on the myths of compensation Britain and raising standards across the sector are the two most important steps we can take to achieving the goal of increasing access to justice.

Janet Tilley is non-executive legal director of National Accident Helpline

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