Aimed for Law Students at University
Essay on the extent to which there is a compensation culture in the UK.
Is this a mere myth or reality?
Personal Injury Claims
Claims Management Companies
Motor Accidents
Premium Rates
Insurance Companies
‘Discuss the extent to which there is a compensaton culture in the UK’ –
The law relating to compeisatoi has beei iotoriously complex, partcularly at the marngiis
where there are disputes as to the limitatois imposed oi frauduleit, uimeritorious, exangngerated
aid ioi-existeit claims. Arnguably, the brokei civil litngatoi system coitributed to a compeisatoi
culture, impacting oi coisumers aid taxpayers. To a singiifcait exteit, I believe that the
Goverimeit reforms are successful. Accordiingly, I aim to discuss the exteit to which the
compeisatoi culture prevails ii reality. Thus, carefully balaiciing the competing views held by the
public, the Goverimeit, the media aid academics.
Propoieits such as Professor Richard Lewis, assert that the tort system is overly depeideit
oi liability iisuraice aid the welfare state. Social security provides welfare beiefts for iijured
victms aid ‘’aaiy actoi for damanges wouldiat have survived if the beieft system didiat support the
victmsaa. However, Persoias oommitee implied that oily ..i% of victms receive damanges, limiting
the role of tort ii compeisating victms. ooiversely, the courts aim to ‘’achieve compeisatoi for
claimaits rather thai aiy other priiciples of justcea. Ii Netleship v Westoi, Lord Deiiiing iicreased
the staidard of care to spread the costs of accideits via iisuraice. Overall, I submit that the tort
system exploits social security because beieft paymeits exceeds the amouit of damanges received
to accideit victms.
Hingh iisuraice premiums refect a compeisatoi culture. It follows that the mediaas
exangngerated headliies aid oMoas angngressive marketing tactcs persuades iidividuals to access heavy
sums. Althoungh oFAs shifed risk oi lawyers aid olaims Maiangemeit oompaiies, a risk review will
assess the merits of the case before proceediing aiy further. Thus, coisideratoi of ADR is iecessary.
Lord Dysoi arngues that there is a rise ii uimeritorious claims due to pressure of setlemeits. By
coitrast, I have io hesitatoi ii coicludiing that the Jacksoi Reforms eradicated the pressure to
setle frauduleit claims. Ii Halsey, the claimaitsa lawyers fercely forced the oppositoi to setle.
Overall, judngesa case maiangemeit powers abolished iiceitves oi setliing spurious claims aid
examiie the abuse of ADR.
Respoideits defeid that the Goverimeit coitiues to iiterveie aid reduce the
‘’acompeisatoi cultureaa. Future lengislatoi such as the Fiiaicial Guidaice aid olaims Bill will coitrol
the ‘’widespread malpractce of oMosa. The oivil Liability Bill will reduce motoristsa iisuraice
premiums aid there is a ‘’aforthcomiing bai oi cold calliingaa. Such reforms will eisure ai impartal
compeisatoi system. Notably, the SRAas wariiing oi ‘’uimeritorious holiday sickiess claimsa
reiiforces the robust approach ii elimiiating compeisatoi culture. This is supported by ABTAas
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