Member Article

Dispelling myths in the personal injury sector

The personal injury claims industry has garnered a bad reputation in the UK but Newcastle’s TRUE want to dispel a few myths. The firm started out as a three-person operation and now boast a 200 strong team with offices in Newcastle, Leeds and Ipswich. Bdaily posed a few questions to TRUE Partner, Richard Milner.

The personal injury industry has had a bad rap in recent years, why is that?

It’s a number of issues really. Certain newspapers, the insurance industry and the Government have constantly suggested that there is a “Compensation Culture” in the UK, where everyone is out to make a quick buck. This is simply not true. In 2004 the Better Regulation Task Force advised the Government that the “Compensation Culture” was an urban myth and didn’t actually exist. The fact is that if someone has a genuine accident and is injured as a result of someone else’s negligence, they are entitled to be compensated in law. If an accident victim suffers at the hands of someone else, would benefit from early treatment which is simply not available on the NHS, is perhaps unable to work and earn a living (to pay their monthly bills), are they not entitled to seek redress from the at-fault party who is usually insured for that purpose?

The Government has been intent on reducing the number of injury claims, and recently there have been massive reforms to the industry. Among the reforms, fees that solicitors receive for dealing with injury claims have been significantly reduced, solicitors are no longer able to make or accept referral fees for injury claims, and the procedure for dealing with injury claims has seen extensive change. The Government is consulting on more changes to the industry and an announcement is expected within the next few weeks.

The reputation of the industry has also suffered because of media attention when an unscrupulous individual or organisation is convicted of committing fraudulent insurance claims – this does taint our industry as it makes the public believe that every other claim is fraudulent, which is simply not true. Admittedly, fraud does exist and it needs to be eradicated, but because of the hysteria which is often created in the media people undoubtedly believe it is more commonplace than it actually is. The vast majority of claimants are innocent victims who have suffered at the hands of others – they shouldn’t be stigmatised because of the actions of a small minority, they should feel comfortable with their decision to seek redress.

Finally people are sick of receiving spam emails and text messages from direct marketing companies, which again affects the reputation of our profession.

That said, what challenges has TRUE faced?

We have had to change the way we generate work, hence the rebrand to TRUE and a more public facing brand. We have always strived to run a very slick operation without compromising quality of service, however the cut in fees has meant that we have had to look even more closely at all aspects of how the firm is run so that we are able to increase efficiencies but still offer the same high level of service. The reforms were brought in swiftly, giving firms little time to adapt and plan ahead. We are still waiting for the government to set out their intentions for further reforms, so the future of the personal injury sector remains uncertain. That said, TRUE is well placed to adapt to any further changes – we have received our licence to operate as an Alternative Business Structure, which gives us greater flexibility in how we operate compared to many other firms.

Is there still money to be made by solicitors in this industry?

It’s safe to say that the personal injury sector is a very difficult trading environment at present, however we believe that with the right business model, the right staff, and investment in IT to drive efficiencies, solicitors will still be able to help injured victims obtain the compensation they deserve.

How do you employ ethics in your business?

We don’t indulge in any dubious marketing activities, and certainly don’t encourage or knowingly pursue fraudulent or frivolous claims. We win more than 9 out of 10 cases, a statistic which is the result of only ever aiming to take on genuine claims. Our brand stands for claiming with integrity, which is why clients of TRUE should not feel as though they are part of any perceived Compensation Culture. Everything we do has the client at its heart – if it’s not in our clients’ best interests then it doesn’t interest us.

What are the benefits of operating from the North East?

The firm was established in Newcastle in 1995, and it’s true what they say about the people of the North East. 55% of our staff have been with us for over 5 years and 31% for over 10 years. That’s remarkable in our industry, but proves the loyalty of our staff and the team environment that exists. Of course there are also lower operating costs compared with other parts of the country.

6. What excites you most about your industry?

Helping clients who have suffered a traumatic experience through no fault of their own to obtain the justice and compensation they deserve remains our motivation. When a client thanks you for a job well done, and you know that you have helped to minimise the sometimes devastating effects an accident can have, it does create an immense amount of job satisfaction. These are the highs that you get out of bed for, despite all of the knocks the profession has experienced in recent years. We have faced unprecedented change in the personal injury sector, with more change still looming, but with the right business model in place we remain hopeful that injured claimants will still receive the access to justice they deserve.

This was posted in Bdaily's Members' News section by Tom Keighley .