The Ministry of Justice first presented the no win no fee claims system in the country during the 90s to allow citizens equal access to the justice system. This arrangement meant that the client is to only to pay their legal representatives upon winning a claim successfully. The usual legal fee covered by a successful claimant is 25% of their compensation amounts. However, because severe cases had left many victims undercompensated, the MOJ gave severe injury claims a win/lose no fee advantage.

ministry-of-justice

The win/lose no fee agreement became applicable to all injury claims. The legal representatives will now take their legal fees and other expense fees against the defendant. However, because many fraudulent and exaggerated claims came about in the following years, the MOJ has decided to abolish the win/lose no fee claims system in 2014.

Should the United Kingdom go back to the no win no fee claims system? Authorities think so; the expenses dealt by fraud whiplash claims cost £2 billion compensating for incontestable claims. The Ministry also plans to increase the Small Claims Court payouts to £5000 to reduce the stress from insurance companies. The health boards will give consideration for severe and unlikely-fraud claims, such as medical negligence and extreme cases, for win/lose no fee agreements.

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