Compensation culture
Companies which encourage people to make frivolous compensation claims are being warned by the government they have one last chance to avoid regulation and introduce a voluntary code of practice.
Stakeholder Response: Which?
"An independent legal service authority implementing regulation across the board will drive up standards and give people better protection.
"As research has shown, there is little evidence of a booming compensation culture in the
"By regulating these service providers people can feel confident that they are receiving the best advice, including whether they have a claim worth pursuing and that they have access to redress should things go wrong."
Stakeholder Response: Association of British Insurers
Mary Francis, director general of the ABI, said: "Lord Falconer has signalled that the government is engaged and involved in this issue. This is a significant and very welcome breakthrough.
"Compensation is rightly paid in
"The insurance industry will continue to play a constructive and positive role in combating the threat of a 'compensation culture' of frivolous claims."
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