UK’s exorbitant legal bill

The Association of British Insurers calls for reductions in the UK’s legal fees

The ABI called the rise in legal fees in settling road traffic personal injury claims as “Unaffordable, unsustainable, unacceptable”. The process of settling low value (under £10,000) motor personal injury claims is costing UK consumers £2.4 million per day, or £1,666 every minute.

In addition the ABI highlighted the increasing level of legal costs where in 2010 one particular insurer’s legal costs represented 142% of the injured victims compensation received.

The ABI’s Head of Motor and Liability Insurance, James Dalton, said that the “system is riddled with disproportionate and excessive legal costs, often exceeding compensation awards. This means higher insurance costs for motorists and businesses”.

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