Claims: advertising reinforces public's negative views about compensation culture

There is no straightforward link between public mistrust of the claims process and personal injury (PI) advertising, a government-commissioned report has concluded.


The research from consultancy Millward Brown found that advertising primarily reinforces negative perceptions about the compensation culture, rather than creates them.


Four-fifths of the public surveyed agreed with the statement that 'there is a culture in the UK of making false claims for personal injuries', despite the evidence to the contrary.


The work identified two areas of potential concern that consumers are being misled: a lack of certainty as to what 'no win, no fee' means and whether it protects consumers from disbursements, as the public mainly registers the 'no fee' element; and advertising not making it clear that there needs to be a third party at fault.


The report said: 'Current advertising codes would seem to cover [these] issues, though if loopholes were being exploited, there may be a need to tighten the framework.'


Meanwhile, constitutional affairs select committee chairman Alan Beith told MPs last week that there is no reason why simple PI cases cannot be heard before small-claims courts, provided complex medical reports are eliminated from the equation and replaced by a GP's letter.


Opening a debate on small claims, Mr Beith said the argument about an inequality of arms between an unrepresented claimant and an insurance company 'neglects the judges' active role and the pains to which they go to ensure that unrepresented claimants are not put at a disadvantage'.


Labour MP Andrew Dismore, a PI solicitor, argued strongly against the committee's call to raise the current £1,000 small-claims limit for PI to £2,500, saying: 'The basic error into which the select committee has fallen is to suggest that personal injury cases are somehow on a par with consumer cases.'


Other members expressed some support for raising the limit to £1,500 in line with inflation since it was set in 1991, while Shadow Solicitor-General Jonathan Djanogly said the Conservatives would back £2,000. The government is currently reviewing the limit.