LONDON: The U.K. government is bringing in a new bill, the compensation bill that provides a new regulatory framework and code of practice to curb excesses in compensation claims. The rule provides for jail terms to those who exploit the general public.
The Claims Standards Council has received several complaints against companies for misleading the public by using NHS branding to attract clients.
The proposed regulation, when comes in force, will make it a punishable offence for unauthorised people to offer claims management services. Those found guilty can spend up to two yeas in prison, the Lord Chancellor, Lord Falconer, said.
The government wants to protect people from being slapped with a compensation claim in the first place, by requiring proof that negligence indeed took place.
The bill is part of a series of measures being initiated to reduce pressure on the justice system and on people caused by unjustified claims. There will be a new complaints procedure for those dissatisfied with the service they receive, Lord Falconer said.
The Bill will define what the courts can taken into consideration when deciding negligence. Lord Falconer said the courts would be reminded to take into account the wider social value of activities when considering claims.
Recently there were reports that several schools have stopped outdoor trips fearing legal action. A teachers' union had advised its members against organising school trips and other out-of-school activities because of increased risk of legal action in case of any untoward eventuality.
Lord Falconer has criticised the way the so-called service providers have been advertising. He cited the example of a firm of personal injury solicitors, which had been allowed to advertise on a police accident report form.
The new regulation will cover England and Wales.
Chairman of the Bar Council, Mike Mansfield QC, welcomed the bill saying the claims farmers had caused widespread public concern about ambulance-chasing and the generation of frivolous or vexatious claims.
Posted
on : Fri, 04 Nov 2005 07:30 GMT | General News
By : Chris Rowe
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