Conditional 'no win no fee' Insurance Policy
30 December 2004, 08:16 PM
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Conditional Fee ('no win no fee') Insurance Policy
Following on from my earlier thread; can anyone explain exactly how a Conditional Fee (no win no fee) insurance indemnity works?
Id assume that for a small fee the policy indemnifies you (or your solicitor), covering their costs should your case fail. Still; thats not exactly 'no-win no-fee' is it? More 'we-win-no-matter-what pal'.....Which isnt filling me full of confidence.
Simon
Id assume that for a small fee the policy indemnifies you (or your solicitor), covering their costs should your case fail. Still; thats not exactly 'no-win no-fee' is it? More 'we-win-no-matter-what pal'.....Which isnt filling me full of confidence.
Simon
Last edited by GC8; 30 December 2004 at 08:23 PM.
30 December 2004, 09:57 PM
#2
A Conditional Fee Agreement is an agreement taken out between you and your solicitor which in broad terms means that you do not have to pay your own legal costs if your case is unsuccesful ("no win, no fee"). This agreement alone however would not protect you in the event that your case was lost and you were liable to pay the other sides costs. Hence the insurance policy. The insurance policy, which is separate to the CFA but taken out through your solicitor for you at the same time, covers you (not your solicitor) in the event that your claim is lost and you become liable to pay the other side's legal costs and disbursements (disbursements are expenses such as court fees and the costs of medical experts' reports).
So if the case is lost your solicitor does not get paid in terms of the work they have done for you, and they cannot claim for the cost of this work under the CFA insurance. The work effectively is written off by the firm. However, you as client do benefit from the insurance (assuming you have not breached the terms of the policy in any way) as your disbursements, and more importantly, the other sides costs and disbursements (which you can be liable for if you lose) are covered under the insurance policy. As the cost of taking a personal injury case all the way to trial can easily be as much as £10,000 and a lot more in complex cases, the peace of mind that the CFA insurance offers to a client is very worthwhile.
Just to underline, the solicitor does not benefit from the insurance policy, and from your lawyer's point of view "no win, no fee " means exactly that.
The insurance policies vary, but generally if you lose you are likely to be liable to pay for the insurance premium only. In straight forward road traffic cases the premium is usually around £375 or thereabouts. It varies depending on the insurer which your solicitor recommends. Do check this with your own solicitor who will advise you about your individual policy.
It is important to read carefully the terms of the agreement and any insurance policy prior to signature and to ask if you are unsure about any aspect.
Hope this is helpful.
So if the case is lost your solicitor does not get paid in terms of the work they have done for you, and they cannot claim for the cost of this work under the CFA insurance. The work effectively is written off by the firm. However, you as client do benefit from the insurance (assuming you have not breached the terms of the policy in any way) as your disbursements, and more importantly, the other sides costs and disbursements (which you can be liable for if you lose) are covered under the insurance policy. As the cost of taking a personal injury case all the way to trial can easily be as much as £10,000 and a lot more in complex cases, the peace of mind that the CFA insurance offers to a client is very worthwhile.
Just to underline, the solicitor does not benefit from the insurance policy, and from your lawyer's point of view "no win, no fee " means exactly that.
The insurance policies vary, but generally if you lose you are likely to be liable to pay for the insurance premium only. In straight forward road traffic cases the premium is usually around £375 or thereabouts. It varies depending on the insurer which your solicitor recommends. Do check this with your own solicitor who will advise you about your individual policy.
It is important to read carefully the terms of the agreement and any insurance policy prior to signature and to ask if you are unsure about any aspect.
Hope this is helpful.
30 December 2004, 10:00 PM
#3
& if you think I composed the above - you have got to be joking 
My wife is a specialist PI solicititor/APIL member & what I thought would be a couple of lines turned into a 30 minute exercise! Oh well, better from the horse's mouth than I
HER FIRST POST ON SCOOBYNET IN 5 AND A HALF YEARS!!!!
My wife is a specialist PI solicititor/APIL member & what I thought would be a couple of lines turned into a 30 minute exercise! Oh well, better from the horse's mouth than I
HER FIRST POST ON SCOOBYNET IN 5 AND A HALF YEARS!!!!
30 December 2004, 10:03 PM
#4
Originally Posted by Puff The Magic Wagon!
A Conditional Fee Agreement is an agreement taken out between you and your solicitor which in broad terms means that you do not have to pay your own legal costs if your case is unsuccesful ("no win, no fee"). This agreement alone however would not protect you in the event that your case was lost and you were liable to pay the other sides costs. Hence the insurance policy. The insurance policy, which is separate to the CFA but taken out through your solicitor for you at the same time, covers you (not your solicitor) in the event that your claim is lost and you become liable to pay the other side's legal costs and disbursements (disbursements are expenses such as court fees and the costs of medical experts' reports).
So if the case is lost your solicitor does not get paid in terms of the work they have done for you, and they cannot claim for the cost of this work under the CFA insurance. The work effectively is written off by the firm. However, you as client do benefit from the insurance (assuming you have not breached the terms of the policy in any way) as your disbursements, and more importantly, the other sides costs and disbursements (which you can be liable for if you lose) are covered under the insurance policy. As the cost of taking a personal injury case all the way to trial can easily be as much as £10,000 and a lot more in complex cases, the peace of mind that the CFA insurance offers to a client is very worthwhile.
Just to underline, the solicitor does not benefit from the insurance policy, and from your lawyer's point of view "no win, no fee " means exactly that.
The insurance policies vary, but generally if you lose you are likely to be liable to pay for the insurance premium only. In straight forward road traffic cases the premium is usually around £375 or thereabouts. It varies depending on the insurer which your solicitor recommends. Do check this with your own solicitor who will advise you about your individual policy.
It is important to read carefully the terms of the agreement and any insurance policy prior to signature and to ask if you are unsure about any aspect.
Hope this is helpful.
So if the case is lost your solicitor does not get paid in terms of the work they have done for you, and they cannot claim for the cost of this work under the CFA insurance. The work effectively is written off by the firm. However, you as client do benefit from the insurance (assuming you have not breached the terms of the policy in any way) as your disbursements, and more importantly, the other sides costs and disbursements (which you can be liable for if you lose) are covered under the insurance policy. As the cost of taking a personal injury case all the way to trial can easily be as much as £10,000 and a lot more in complex cases, the peace of mind that the CFA insurance offers to a client is very worthwhile.
Just to underline, the solicitor does not benefit from the insurance policy, and from your lawyer's point of view "no win, no fee " means exactly that.
The insurance policies vary, but generally if you lose you are likely to be liable to pay for the insurance premium only. In straight forward road traffic cases the premium is usually around £375 or thereabouts. It varies depending on the insurer which your solicitor recommends. Do check this with your own solicitor who will advise you about your individual policy.
It is important to read carefully the terms of the agreement and any insurance policy prior to signature and to ask if you are unsure about any aspect.
Hope this is helpful.
30 December 2004, 10:08 PM
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Originally Posted by Puff The Magic Wagon!
& if you think I composed the above - you have got to be joking
My wife is a specialist PI solicititor/APIL member & what I thought would be a couple of lines turned into a 30 minute exercise! Oh well, better from the horse's mouth than I
HER FIRST POST ON SCOOBYNET IN 5 AND A HALF YEARS!!!!
My wife is a specialist PI solicititor/APIL member & what I thought would be a couple of lines turned into a 30 minute exercise! Oh well, better from the horse's mouth than I
HER FIRST POST ON SCOOBYNET IN 5 AND A HALF YEARS!!!!
30 December 2004, 10:33 PM
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Puff; again, thankyou, and RJMS.
Puff, if youd pass my thanks on to your wife Id be grateful.
Simon
Puff, if youd pass my thanks on to your wife Id be grateful.
Simon
Last edited by GC8; 30 December 2004 at 10:55 PM.
31 December 2004, 02:53 AM
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Originally Posted by Puff The Magic Wagon!
HER FIRST POST ON SCOOBYNET IN 5 AND A HALF YEARS!!!!
So Puff manages near enough 11000 posts of dribble an disinformation and then Mrs Puff steps in and makes the entire family look above average intelligence
(IQ=(170+31)/2)) 
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