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Industrial deafness the new cash cow for claimant lawyers and claims management companies

As one door closes, another one opens. The ABI today warns that claimant lawyers and claims management companies are increasingly cashing in on claims for industrial deafness.

Following last year’s reduction of fixed legal costs in the Claims Portal for settling personal injury claims, there is growing evidence that claimant law firms are turning their attention to industrial deafness claims which attract substantially higher legal fees.

The average legal fee that a claimant lawyer received for settling an industrial deafness claim last year was £10,500, compared to £500 for a whiplash claim settled through the Claims Portal. Given the average compensation award for an industrial deafness claim was £3,100, this means that for every £1 an insurer pays out in compensation to the claimant, they pay out just over £3 in legal fees to the claimant’s lawyer.

James DaltonSpeaking at the European Forum on Claims Management, James Dalton, ABI's Head of Motor and Liability said:

"Industrial deafness claims are fast becoming the new cash cow for claimant lawyers, eager to make up for last year’s reduction of fixed legal fees in the Claims Portal. With lawyers typically pocketing three times the amount of compensation paid to the claimant, the rise in industrial deafness claims shows that claimant lawyers are keeping the compensation culture alive and well.

"Insurers are here to pay fair compensation to genuine claimants. But we need to tackle the increasing number of industrial deafness claims by ensuring that claimant lawyers’ excessive legal fees are made more proportionate.”

Last updated 01/07/2016