Insurers are to rewrite a code of conduct on the practice of third-party capture of claimants, the Gazette can reveal.

James Dalton, head of motor and liability at the Association of British Insurers (ABI), said he wanted the voluntary code to be more robust and ensure accident victims are given all relevant information about their rights. The three-year-old code states that all compensation offers should be ‘fair and reasonable’.

Third-party capture is set to become more prominent if the government goes ahead with plans to raise the small-claims cut-off. Dalton said the code could be more consumer-friendly and concise, with a revised version in place by the end of the year.

‘It’s not going to be revolutionary but there are lots of people in the market who criticise us and think the code is too weak. I have taken on board that criticism and have asked my team to think about whether it’s robust enough on the industry.’

The ABI is set to lobby for a damages framework for whiplash and Dalton has not ruled out campaigning for lower compensation payments.

‘I want society to have a conversation about whether a low-speed shunt deserves £2-3,000 in compensation. Frankly it’s a relatively trivial injury,’ he said.

Dalton echoed the view expressed in the House of Commons last week by AXA claims technical manager David Fisher that some law firms will continue to pay referral fees for PI cases – despite the practice being banned last month.