No win, no fee compensation claims and the referral fee cost

Insurance companies are not very popular, nor have they ever been so. This is just one reason why it is surprising to learn that many charge as much as £800 in referral fees to solicitors who are representing their clients in no win, no fee compensation claims.

Many experts estimate the actual cost of providing solicitors with client details to be significantly less than this £800 figure, yet this is what many insurers charge, regardless of whether a person is making a no win, no fee compensation claim for motor accident injuries or work accident injuries.

An idea of the true economic impact of insurers charging these referral fees can be gained by looking at their total accumulated cost over recent years, estimated to be close to £400 million.

These referral fees have long been unpopular with solicitors, with many viewing them as an unnecessary obstacle to speedily achieving justice for a client. One outspoken critic of the system, an independent no win, no fee solicitor from Manchester, comments, "Clients never see a penny of this money. What is even more shocking is that to make it viable to accept cases with lower fees, these claims are often passed to an inexperienced claims handler to deal with rather than a qualified solicitor."

In fact, so frustrated is she with the referral fees system, she has decided not to pay at all, "This practice of insurance companies charging ridiculously high fees which have no benefit for the client really is adding insult to injury and I refuse to pay them. I believe clients should come first."

Making a no win, no fee claim with YouClaim
The term "no win, no fee compensation claim" can be confusing, and potential claimants can find themselves put off certain solicitors by confusing legal jargon and small print.

YouClaim, however, are different. We make things clear.
With all but the exception of claims for medical negligence (where there are certain unavoidable costs to the client), we never charge a single penny in legal costs or fees and also protect the claimant from costs incurred by the losing side. Furthermore, our no-cut commitment ensures we deliver 100 percent compensation in every successful claim.

Win or lose, we are completely cost-free. It couldn't be any simpler.
But what would be the use of a free service if it didn't you any good? Here at YouClaim it wouldn't be possible for us to operate if we didn't have only the best lawyers on our panel firms. That is why our panel firms select only the most qualified and dynamic candidates to represent your claims, ensuring your claim receives the very best chance of success.

It will also reassure you to know that all our specialists are governed by the Solicitors Regulation Authority, a regulatory branch of the Law Society.

To get in touch with us today, fill out an online claim form, or call our freephone accident compensation helpline on 0800 10 757 95.