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The Times: Competition Commission called on to take the headache out of car claims

October 4, 2012 at 1:00 PM

John Spencer speaks to The Times' Edward Fennell on the Office for Fair Trading (OFT) announcement that it had referred the motor insurance claims business to the Competition Commission.

"Meanwhile, the Legal Services Act 2007 is adding another dimension to the complex relations between lawyers and motor insurers by bringing new players into the sector. Saga this week announced plans for 'a new range of legal services in England and Wales, aimed at revolutionising the market by making legal services more straightforward'."

In other words, as John Spencer of Spencers Solicitors (an advocate for the rights of injured people), says, rather than law firms paying insurers for the privilege of representing their policy holders, the insurers will own the solicitors - and how will the best interests of the road accident victims and policy holders be served by that?

He welcomes the referral to the Competition Commission but adds:

"It is essential that the issues are looked at in the round. Too often, only specific aspects of the problem are examined but we will only get to the bottom of it once all the various elements are taken into account - and that now includes the impact of the Legal Services Act."


Read the full article Competition Commission called on to take the headache out of car claims on The Times website (subscription required).

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