Fixed fees to be reduced


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Jonathan Djanogly has confirmed that the Government intends to reduce the fixed fees in RTA claims once the ban on referral fees comes in.

Can we also expect a reduction in Guideline Hourly Rates, which haven’t been increased this year?

A nicely balanced piece on the subject of RTA claims was published in the Daily Mail.


4 thoughts on “Fixed fees to be reduced


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    Graham on said:

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    Rather ironic that the article referred to highlights Jack Straw banging his drum, and yet the Labour Party are also guilty of cashing in on referral fees: http://www.dailymail.co.uk/news/article-2049903/Labour-cash-ambulance-chasers-win-fee-lawyer-links.html


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    Anonymous on said:

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    UK’s biggest refferers, are the Insurance companies.

    3 listed Insurers share values dropped significantly, on the refferral fee ban being announced, due to the significant drop in income

    Insurance companies set the rate for Insurance premiums, if they are going up (which links nicely to their rising profit margins) its because the Insurers control the market, not anything else.

    And what of the actions of certain Insurers themselves, marking up their own repair claims being presented to other insurers, recently exposed by the Courts?

    Simons comment regarding a reduction in the rates may be tongue in cheek (or not!) – to be frank I see an argument arising from the Moto Appeal as to why these should be immediately increased – but it is indicative of the one-way reporting and slating which continues against Claimants

    Pretty pathetic really


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    Jonathan James on said:

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    So are we going to see statutory regulation of insurance premiums in the way that we have statutory regulation of legal costs? At least an aggrieved party can ask an outside body to rule on a fair figure where there’s a costs order or bill. Any chance we can have the same for insurance policies please? A whole new industry beckons in an economic downturn – what could be better than that?


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    Anonymous on said:

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    In light of the Appeal in Moto, disallowing funding work as it is part of overheads and therefore subsumed in the hourly rate, given this has never before figured in any hourly rate calculations, are we now to expect the historic “guidelines” to be ripped up, and higher rates put in place to account for this added element of overheads?

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