04. What are claims assessors and claims management companies?

Since public funding (legal aid) for most personal injury cases was stopped, there are new options for getting help to claim compensation for a personal injury. Claims assessors and claims management companies specialise in negotiating compensation for you from whoever you think caused your injury.

There is no legal definition of a 'claims assessor' or a 'claims management company'. Different ones work in different ways. However, most claims management companies use solicitors to help you with your case, while most claims assessors do not.

How much do they cost?
Claims assessors normally operate on a 'contingency fee' basis. This means that if you win compensation, the company will take a percentage of the amount you win as their fee. If you lose your case, they will get nothing.

If you use a claims management company that uses a solicitor to represent you and there is a chance of your case going to court, you may have to take out an insurance policy. This is to make sure that you do not have to pay anything if you lose your case and the judge makes you pay the other side's legal costs.  This insurance can be expensive, but the claims management company will set up a loan for you to cover this cost.

If you win your case, you may be able to get the cost of this insurance paid for by the other side, on top of the compensation. However, there is no guarantee that you will get back all of the cost of the insurance premium. The judge decides whether it would be reasonable to make the other side pay this. And, whether you win or lose your case, it is likely that you will have to pay the interest charged on the loan out of your own pocket.

Why is a claims management company different from a solicitor?
The main differences between using a claims management company which uses solicitors and employing a solicitor direct is:

• the way you may have to pay for your case (see 'How much do they cost?' above); and  
• the role of the claims manager, who will act as a go-between for you and the solicitor.

There are bigger differences if you use a claims assessor that doesn't use solicitors to put your case. These are as follows:

• A claims assessor can only put your case to the organisation you believe is responsible for your injury. They cannot take court action for you or represent you in court. This means that if they cannot get compensation for you but you still feel you should get it, you will then have to use a solicitor to start court action.  
• Claims assessors are not regulated in the same way as solicitors are. All solicitors must follow the Law Society code of practice. And they must have insurance against negligence and have their own complaints system which you can use if you are not happy with how they handled your case. And if you are not happy with how they have handled your complaint, you can complain to the Office of Supervision of Solicitors (OSS). They can make the solicitor pay you compensation if they find that the solicitor has not acted as they should have.

How do I choose a claims assessor or claims management company?
There are no specific rules and regulations covering how claims assessors and claims management companies must work (for example, how they can charge you). So you should ask before agreeing to let one take on your case. You should check:

• whether your case will be handled by a solicitor or by someone who isn't legally qualified;  
• whether they have any particular experience in your type of claim;  
• what you will have to pay for if you win your case (and when);  
• what you will have to pay for if you lose your case (and when); and  
• what you can do if you are not happy with how your case has been handled.