Elite has been sent a copy of a letter from Sabre dated 23 January 2013 which is sent directly to the claimant as well, encouraging the claimant to cancel any After the Event insurance policy as well as any CFA [success fee] in return for an increase in general damages of 10%.
Elite Insurance considers this mere cost saving exercise as, in fact, extremely detrimental to the claimant’s prospect of settling their claim on the most favourable terms, having been funded by a CFA and with the protection of an After the Event insurance policy. Indeed, it is evident that there will be a vibrant After the Event insurance market post commencement of LASPO, as there are still numerous litigation risks including Part 36 and disbursements on discontinuance as well as defendant behavioural risks.
Chief Operating Officer of Elite Insurance, Russell Smart, commented:
“The After the Event insurance market has seen a number of dirty tricks campaigns by liability insurers over the last thirteen years, but this has gone beyond the principle of a level playing field and claimant solicitors should be aware that by cancelling an ATE policy will leave the client exposed and in a very weak position in terms of negotiation. In fact, as the majority of road traffic accident claims are settled well below £3k, a 10% increase of £200 - £300 in damages will clearly be less than the success fee and ATE premium that is recoverable. Therefore it is clear as to why Sabre Insurance is taking this approach. By then leaving the claimant without costs protection they will inevitably settle their claim on less favourable terms in any event. So this presents a ‘win win’ for the insurer”.
“We are certain the FSA will consider these practices to be inappropriate and unacceptable and we await their comment in this regard”.
For further information, please contact:
Elite Insurance Ltd.
Jason Smart, Chief Executive Officer Tel: +44 (0) 147 656 0113
Parm Evans Tel: + 44 (0)750 146 2045
Notes to Editors:
Elite Insurance Company Ltd
Elite Insurance Company Ltd is a niche insurer licensed to underwrite insurance for legal expenses, miscellaneous financial loss, general liability, surety etc. and covers the UK, France, Italy, Spa