What exactly is "No Win, No Fee" Compensation?
By Steve Hoyle
A lot of people are often confused by what the term 'No Win No Fee Compensation' really means. The claiming compensation industry has growing really vast, with what seems like thousands of companies all telling you that you can get your hands on no win no fee compensation for your injuries, without taking a hit in the pocket as a consequence. A lot of companies offer claimants a 'no win no fee compensation' service. It is not unusual to see the phrase placed within their adverts that you commonly see on magazines, televisions, radio and in newspapers. Unfortunately, not all of these are entirely honest about their no win no fee compensation process and the result is a lack of continuity between companies who say that you won't be charged when you make a claim with them.
What is No Win No Fee Compensation?No win no fee agreements, otherwise known as 'Conditional Fee Agreements', were introduced in the late 1990's and became more frequently used in the early 2000's. This was when the government abolished legal aid for those wishing to claim no win no fee compensation for their personal injuries. Genuine no win no fee law firms will help you with the process of making a no win no fee compensation claim if you have had an accident where there is liability from a third party. They will do so completely free of charge so, as stated in the term, you really will pay nothing for making a no win no fee compensation claim. If you win your compensation claim, your solicitor will charge the losing side their legal fee. This is separate to any no win no fee compensation you are awarded and hence why most will tell you that you receive 100% of your compensation by using their no win no fee compensation services.
However, if your claim is not successful, your solicitor will not charge you any costs. These are instead met by the After the Event insurance policy that they take out prior to any formal legal proceedings. no win no fee compensation specifically means that if the case isn't won, the solicitor is not entitled to claim a legal fee against either party. The introduction of no win no fee compensation agreements led to an increased effort of advertising from law firms who dealt with personal injury claims. This in turn resulted in increased media interest of success stories of people who had gone on to use the No Win No Fee Compensation system to secure themselves a compensation payout after being injured at work, on the road or elsewhere. Unfortunately, this increased media coverage turned began to shown in a negative light by some, with people stating that Britain is turning into a 'claims culture' similar to that of America. What the skeptics need to realize here is the stark difference between a society of people who are making no win no fee compensation claims for the very smallest of injuries, and the increased awareness of their rights after being injured unnecessarily. As well as this, with a little bit of research these people would realize that the numbers of no win no fee compensation claims have risen very little over the last decade, suggesting that the supposed 'claims culture' is in fact no more than increased reporting of the issue within the media.
