Third-party capture is ‘legitimate’ and ‘in everyone’s interests’, Nick Starling, director of general insurance and health at the Association of British Insurers, told delegates at last week’s conference.

In a number of heated exchanges, Starling was grilled over the practice of third-party capture – also known as ‘third-party assistance’ – whereby insurers settle claims directly with motor accident victims who have had a collision with their policyholder, without the victim receiving independent legal advice.

‘There is nothing wrong with approaching people who have had minor injuries,’ he said. ‘Insurers would be mad to pay people less in these circumstances. And people want to get compensation quickly.

‘We think third-party assistance is legitimate if done properly. I simply don’t understand why it should be any different. It is in everyone’s interest to have a low-cost system. We don’t need unnecessary costs when cases are simple.’

APIL president Muiris Lyons said: ‘It is fundamentally wrong that an insurer can approach an injured person with a cheque without that person being given any independent advice. There is a blatant conflict of interest.’