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The government is to ban referral fees in personal injury claims in an attempt to curb the "compensation culture".
It says the current system in which personal injury details are sold on by insurance companies to lawyers has led to rising insurance costs. Justice minister Jonathan Djanogly said honest motorists were seeing their premiums hiked as insurers covered the costs of ever more compensation claims. There is no current timescale for implementing a ban.
The government wants to stop losing defendants having to pay a "success fee" to reimburse the claimant's lawyer for unconnected cases he may have lost. It says the proposals before Parliament mean people making the claim will have to pay the success fee - which will be capped - rather than the defendant. Legal costs overall will fall which means lower costs to pass on to customers, it adds.