No Win, No Fee, what is it?

[T.C]

This a question I answered in response to someone asking about no win no fee cases and how it works, and although a few years old now, it is still relevant.

However, whilst some costs can be levied against the individual in some circumstances, for example if you choose to ignore the advice of your solicitor, in 99% of cases claimants keep 100% of their compensation, unlike with accident management firms where they will often charge a commision or fee which is taken from your award.

I’ve recently been injured in a bike accident, and I am looking to make a claim against the person who caused my injuries. My solicitor has offered to represent me on a no win, no fee basis. Does this mean that if I lose my claim I will not be liable for any costs? How does it work?


The great benefit of ‘no win, no fee’ is that, when using a solicitor, you don’t face a bill if you lose. This is how it works.

If the solicitor is willing to accept your case, he will talk you through the no win, no fee agreement. Regulations govern what must be in this, including the provision that if you lose, you pay nothing and the solicitor gets paid nothing.

Solicitors have to cover the possibility of not getting paid by being paid extra if the case is won – a success fee. This is not a cut of the compensation. Instead their normal charges are increased to reflect the risk. So in a complex case the success fee might be 50 per cent above what would normally be charged.

Some solicitors routinely take out an insurance policy for you, so that if you do lose the policy pays any expenses like medical reports and the interest on any loan to cover these payments. Also, cleverly, you only have to pay the premium for the insurance if you win so if you lose, the insurance will have cost you nothing. The Accident Line scheme endorsed by the Law Society uses this model.

Other solicitors do not bother with insurance – maybe because they are pretty certain that your case is going to win. However, they take the risk that if the case is lost, they have to pick up the expenses of the case themselves.

If you win, your opponent’s insurance company should pay the success fee and related insurance, so you should not normally have deductions from your compensation (other than to cover interest on the money used to pay for the medical reports and insurance premium).

However, there have been instances of claimants only receiving a fraction of their compensation. This happens when solicitors (usually recommended by a claims management company) have charged claimants for unnecessary insurance policies and loans. The cost of these have then been taken from the compensation.

It’s therefore essential you find out from your solicitor what money might be stopped from the compensation and check that this is fair. A good idea is to use a specialist solicitor recommended to you by someone who has used their services before.
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It is better to arrive 30 seconds late in this world, than 30 years early in the next

[G]

Useful post(s) .

Can you explain the difference, if any of what 'legal insurance' offers to getting a no-win no-fee solicitor after an accident?

From what I remember, most things offering legal insurance seem to only cover non-fault accidents where they basically think they can make some money, so seems the same, but you usually pay extra for it .

Haven't looked into massively myself (though after our car accident, I did get a call from one who quickly shied away when he realised people were claiming from me rather than the other way around.)

[T.C]

[veeeffarr]

Also do you know anything about 'Excess Insurance'?

The Bike Insurer are offering this on their policies.

T

[gmanxiii]

So will there generally be an issue if you sack you LEI provided firm to appoint another one? Will you be opening a whole new can of worms regarding charges and stuff? Or is it just a case of giving current solicitor details to new ones and have them sort it out and obtain the reports i filled out, reciepts ive sent off etc?
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I kills hondas

VFR400NC30 > ZZR600 > CBR600FX > CBR1000rr

[T.C]

[G]

[headlamp]

Hi TC,

Nice to see you back!

[T.C]

[map]

[T.C]

[Jlo31]

[T.C]

[Jlo31]

Good to know. Thanks.

Jlo