Road Accident Solicitors: Third Party Capture or Third Party Assistance
by It’s no surprise that road accident solicitors and insurance companies aren’t always the best of friends. But there is one practice that they disagree on to such an extent that they cannot even agree on what to call it. Insurers like to call it third party assistance, but road accident solicitors prefer the more scary sounding third party capture.
It’s no surprise that road accident solicitors and insurance companies aren’t always the best of friends. But there is one practice that they disagree on to such an extent that they cannot even agree on what to call it. Insurers like to call it third party assistance, but road accident solicitors prefer the more scary sounding third party capture.
This is the practice of insurance companies making direct contact with a third party who has a claim against one of their policy holders and offering to settle the claim. However, this contact is made very quickly after the accident happening, before legal advice has been sought. Certainly, there have been reports of claimants being called upon in their own home within hours of the accident.
For a long time, road accident solicitors have expressed their concern about the practice, arguing that seeking legal advice is important. They also make the very valid point that insurers face an impossible conflict of interest in settling the claim. This is because they will be trying to keep their own payouts low whilst claiming to make reasonable offers to claimants.
Much to the disbelief of road accident solicitors, insurance companies claim that the compensation paid out this way is not lower than the settlements advised by lawyers. They also state that dealing with payments this way is quicker. This is no good if the amount paid is unfair, claim road accident solicitors.
One might expect third party capture/assistance to be included in the regulations of the 2006 Compensation Act. However, insurance companies are actually already regulated by the FSA.
To attempt to legitimise the practice and dispel some of the concerns that surround it, the Association of British Insurers are working to introduce a voluntary code of practice relating to the practice. It will give details of appropriate ways of contacting victims and how insurers must make victims aware of their right to legal advice. There will be no ‘punishments’ for insurers who do not follow this code. But the FSA claims is will be more concerned with investigating practices of companies which do no sign up. However, road accident solicitors remain unsure and are certain to continue keeping an eye on the practice.
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