The Law Society’s civil justice committee is in negotiations with legal expenses insurers to agree rules that will ensure freedom of choice of solicitor in personal injury claims.

The committee has held two meetings with insurers in a bid to agree terms enabling clients to choose a solicitor who is not on the LEI’s panel.

The committee has reported that there is now ‘common ground’ between the Law Society and insurers on the issue.

A working party set up by the civil justice committee has drafted a set of proposed rules governing the use of non-panel solicitors.

It is understood that a further meeting is to be held with insurers to obtain their views on the draft agreement.

Any agreement will have to be approved by the Society’s Council and its Legal Affairs and Policy Board (LAPB) before a deal can be made with insurers.

The LAPB has indicated that it agrees with the proposal to reach a deal.

Last month it authorised the civil justice committee to continue negotiations with insurers.

The committee will give a full report on its progress at the end of the month.

Watchdog Consumer Focus called for consumers to be given freedom of choice over their solicitor in a report on the LEI market in April.

It noted that the current lack of choice raised ‘issues of impartiality’, particularly where the insurers’ in-house lawyer conducts an initial assessment of a case.

On an international level, the Council of Bars and Law Societies of Europe and the International Association of Legal Protection Insurers have recently collaborated on a joint project looking into freedom of choice of solicitor.

Under the Insurance Companies (Legal Expenses Insurance) Regulations 1990, ‘insured persons’ are free to instruct a solicitor of their choice.

However, the insurers’ contractual terms usually mean that this is only actionable once legal proceedings have actually been issued.

Last month the European Court of Justice ruled that legal expenses insurers have the right to impose some restrictions on an insured’s choice of lawyer.

See euroblog.