Personal injury claimants receive more compensation when they are not represented by lawyers - and their claims are settled on average 95 days earlier - a study of 100,000 claims commissioned by the Association of British Insurers (ABI) indicated this week.


Claimant solicitors hit out at the research, which they allege is a 'cynical ploy' to further the ABI's agenda to banish lawyers from the personal injury compensation system for smaller claims.


The study analysed motor, employers' liability and public liability claims where compensation ranged from £1,000 to £25,000. It found that claimants who were not legally represented received an average of £290 more than those who instructed lawyers.


The greatest difference in compensation was in employers' liability cases, where unrepresented claimants received an average of £666 more - though their claims took 53 days longer to resolve. For motor claims, those who did not use a lawyer received £85 more compensation, with claims settled 90 days quicker.


Lawyers did have a positive impact on compensation levels in public liability cases, however, with their clients getting an average of £607 more. However, their claims took 103 days longer to resolve.


Law Society President Kevin Martin said: 'Insurers routinely take advantage of unrepresented claimants by offering derisory settlements. The so-called "research" fails to show how much the unrepresented claimants in its sample would have recovered if they had been effectively represented.'


Neil Kinsella, managing partner of national firm Russell Jones & Walker, said he was 'very sceptical' of the findings. 'Insurers might be throwing in something extra on unrepresented claims because they are avoiding the legal costs of the current regime. But if the regime did not exist, would there be downward pressure on the amount of compensation offered by insurers, and how far would that go?'


Colin Ettinger, a partner at Irwin Mitchell and former president of the Association of Personal Injury Lawyers (APIL), added that the research sounded like a 'cynical ploy' to back the ABI's campaign to remove lawyers from the process, which 'flies in the face of independent APIL research that 80% of the public do not trust insurers'.


Stephen Haddrill, director-general of the ABI, said: 'This research has proved that claimants would not be made worse off by a reduction in legal representation.' An ABI spokesman added that far from being cynical, the research backed its proposals for a fairer system.


Rachel Rothwell