MASS MOTOR ACCIDENT

PRESS RELEASE
DATE: 22nd June 2010

CONSUMERS WARNED AGAINST NEW INSURER CODE

MASS Chairman wants TPC regulated

The Motor Accident Solicitors Society (MASS) urges Consumers to always seek independent legal advice, following the publication of an Insurers Practice Guide by the ABI on Third Party Assistance – known largely as Third Party Capture. This practice is when insurers contact the Accident Victim direct following an accident and attempt to settle their claim without them first having the opportunity to seek independent advice. More often than not, Accident Victims are given incorrect and misleading advice concerning the length and cost of a claim if a solicitor is used.

MASS Chairman, John Spencer comments; “ MASS has campaigned for a number of years for the practice of third party capture to be adequately regulated by the Financial Services Authority (FSA), who to date has refused to acknowledge that their current ‘principle based’ regulation does not cover this area of insurer conduct. This regulatory gap has been further enhanced by the ABI Third Party Assistant Claimant Guide due to be published this week, which will only apply to ABI Members (and therefore not all Insurers) and will only be voluntary.

MASS is extremely concerned that the Consumer is left vulnerable and open to potential abuse by insurers who are attempting to act as Judge, Jury and Paymaster when settling a claim direct with the Accident Victim, as well as representing the perpetrator of the accident.

MASS has provided the FSA and the Ministry of Justice with evidence of third party capture; insurers attempting to under settle claims and poor conduct. The FSA have failed to discipline any of the perpetrators showing just how this practice does not provide sufficient protection to the Consumer. Effective Regulation must ensure that all Consumers are treated equally, fairly and justly. The current regulations do not reflect this and an additional insurer ‘voluntary code’ does nothing to enhance this protection.

John Spencer adds: MASS will continue to fight hard for the protection of the Consumer and to have this practice regulated properly and effectively. In the meantime, we would urge the Consumer to always seek independent legal advice to ensure that they receive the justice they deserve”

ENDS

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Notes to editor
The Motor Accident Solicitors Society (MASS) is a national association of solicitors who specialise in Road Traffic Accident (RTA) claims. MASS was formed in 1991 to promote the efficient and expert provision of legal advice for those involved in motor accident compensation claims and handles 400,000 claims a year. The Society assists the exchange of information between solicitor firms specialising in RTA and Personal Injury claims, providing Members with bulletins, newsletters, training courses and a directory of service providers whose services may be required following a road traffic accident.