How No win No fee claims work

by admin on November 19, 2010

How No win No fee claims work

The phrase “No win No fee” is very rarely clearly explained, the reason for this is that the concept of ‘no win no fee’ is a complex and new area of personal injury law. You can pursue a claim in England and Wales with an agreement between you and your chosen solicitor.

The way “No win No fee” works is like this:

If you win your case – you will be awarded your compensation as well as receiving payment for your expenses from the losing parties insurers. So you will receive 100% of your compensation award and your solicitors costs will be paid separately by the losing parties’ insurer.

But, if you lose your case – you will not receive any compensation award and your solicitor will not be paid for the work they have done. This is why such cases are a big risk for any solicitor, as they may end up working for nothing. A solicitor can recover a bonus award from the insurers called a ‘success fee’ but only if your claim is successful.

This concept isn’t that hard to follow but most people worry about what costs they may incur if their claim is not accepted. If you have an agreement with a no win no fee solicitor they cannot charge you for their time win or lose because this is part of the deal. But the main worry for people is who pays for the necessary expenses to progress the claim in the first place i.e. the medical reporting fees, etc? The answer for this is: After the Event Insurance (known as ATE cover).

You can get an insurance policy that protects you and this can be recovered in full if you are successful in winning your claim. However, most people usually already have cover of this nature through a home and contents policy or motor policy. So it is only necessary to get this if you haven’t already got an alternative ‘legal expense’ cover.

Because the risk of losing your claim affects both you and your solicitor, it is important to work as a team with the aim to succeed. And should the worst happen where you lose your claim, ensure steps have been made to protect your interests (i.e. ATE cover) but this cover may not necessary have to be taken out, until a case has been litigated.

About the Author:
Jason Stainton is a legal marketer working for Winston Solicitors, a whiplash compensation specialist law practice based in Leeds West Yorkshire.
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