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Ah Insurance Man #2

Using your example. Let's assume damages of £2,000 just to keep the figures simple.

Pre-LASPO

Damages to client = £2,000

Fixed costs of £1,200 + success fee of £150 = £1,350
VAT of £270 and a medical report of say £300 = £570

Total insurer outlay = £3,920

Post-LASPO - assume that 25% is deducted

£1,500 to client
£416.67 success fee plus £83.33 VAT = £500 (making up 25%)
£500 costs
VAT of £100 plus medical report of £216

Total insurer outlay = £2,816.00

£35 off my premium - bargain!

Of your questions, no a 100% success fee is not reasonable in any case except for the absolutely most riskiest case. No £400 per hour is not justifiable in any RTA short of catastrophic brain injury/paralysis.

Is charging the client allowed? Depends who you ask. A lot of folks think not. They should go and work for free.

I say yes, and my CFA says words to the effect of - 'These are the risks. The success is x%. 5% of the success is charged by this firm as the cost of the waiver of this firm's entitlement to charge you for the balance of the costs unrecovered from the defendant. You have the right to have those costs assessed etc....' Or words to that effect.

I reckon maybe 1 in 10 justifies costs lower than the fixed costs payable by the other side. If that.

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