Personal Injury Lawyers

Lord Sheikh Excerpts

Thursday 7th July 2011 Lords Chamber

Asked by

[Lord Sheikh]

To ask Her Majesty’s Government what assessment they have made of the practice by insurers of introducing customers to personal injury lawyers in exchange for a fee.

[Lord Sheikh]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. I should like to declare that I am the chairman of an insurance broking and financial services organisation.

[The Minister of State, Ministry of Justice (Lord McNally)]

My Lords, the Government are sympathetic to the idea of a ban on referral fees and are looking at how to tackle the issue as part of our wider reforms, and at how we could do so in a way that would be effective.

[Lord Sheikh]

My Lords, I thank my noble friend the Minister for that reply. Lord Justice Jackson’s review of civil litigation costs prescribed a reduction in fixed costs and hourly rates for solicitors, as well as a ban on referral fees. Does the Minister agree with this position, and will he indicate whether the issue will be addressed in the Legal Aid, Sentencing and Punishment of Offenders Bill, which is currently in the House of Commons?

[Lord McNally]

Whether the question of referral fees will find its way into the Bill is a matter for the study that we are undertaking into ways that this could be implemented. However, we are trying to bring forward a range of the Jackson proposals in that Bill. As to referral fees, as my noble friend will be aware, the Legal Services Board and the Transport Select Committee advised a solution in terms of transparency. Lord Justice Jackson recommended a ban and, as I indicated, the Government are sympathetic to the idea of a ban.