No Win No Fee Compensation Claims

The 'No win No fee' phrase has become accepted into our consciousness over the last twenty years. For some however, the phrase is treated with suspicion and resentment due to the bad press that the companies who offer the service frequently get. We will over the next few paragraphs try to bust some of the myths surrounding the expression. We all see an abundance of adverts on TV, online and in our newspapers from people offering to take up your legal case on a no win no fee basis. Do we all understand how they work and how they can be used? We will try and answer some questions you may have about them below.

When were no win no fee claims introduced?

No win no fee solicitors arrangements were legalised in the Courts and Legal Services Act of 1990. It came in response to a problem with access to legal action for a large majority of the population. Before the arrangements were introduced, the legal aid system was prevalent. This provided money up front for people to bring court action whose earnings did not allow for it. However the qualifying earnings limit had become so low that millions of people were unable to have their chance to bring justice to the courts.

Conditional fee arrangements - the legal term for no win no fee - were introduced as an alternative, with legal aid for personal injury finally being withdrawn completely in 2000. Unless you are willing to pay a large sum of money up front, it is now the only way to bring injury claims to court. This makes the bad press they receive all the more baffling. Who would honestly deny someone who has suffered a serious injury through no fault of their own from receiving money to help them live with their condition?

How do no win no fee compensation claims work?

When solicitors take your case on a no win no fee basis, they take out after the event insurance on your behalf. This insurance covers them in the event that your case is lost meaning there is no cost to you the customer. All costs are then recovered from the 'losing' side, including the premium for the after the event insurance. Similarly, the solicitor claims his fee from the 'losing' sides' insurance, ensuring that you the injured party receive the full 100% of your compensation.

What claims can I make on a no win no fee basis?

The vast majority of no win no fee claims are for personal injury compensation. This covers a wide spectrum of events including accidents at work, in public places, medical negligence claims, industrial disease claims and road traffic accident claims. A large variety of claims are available on a no win no fee basis.

No win no fee compensation claims have made litigation accessible to all. No longer the preserve of the rich, claims for compensation have become possible for anyone who has suffered an injury that was not their fault.