UK claims culture is myth

Thursday 27 May 2004 at 8:19 pm | In News | 3 Comments

It is a commonly held perception that the United Kingdom is in the grip of “compensation culture”. Media reports and claims management companies encourage people to make claims by creating a perception, quite inaccurately, that large sums of money are easily accessible. The compensation culture is a myth; but the cost of this belief is very real. Local authorities and councils are spending a staggering amount of money each year dealing with compensation claims. Many claims are spurious. Organisations cancel events and innovation is stifled for fear of litigation. In fact, the number of claims is going down.

Task force report, here

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  1. Surely the number of claims is going down because claims recovery companies, who have been trying for injuries ‘in the last 3 years’ have exhausted the back-log of unmade claims?
    What is happening, I think, is the number of new claims is certainly increasing, fuelled still by ‘legal services’ advertising in a way which, I believe, is morally questionable, and also the nations desire to get rich quick – encouraged by the thoughts of winning the lotter – that’s either getting 6 numbers or tripping over a paving stone.

    Comment by Andrew — Wednesday 9 June 2004 11:22 am #

  2. Andrew, You are not wrong. The use of ADR may also have something do with it, and the cost of court actions. Also, The Accident Group (TAG) and Claims Direct have collapsed, and contingency fees mean lawyers and insurance companies are only attracted to high success claims, Tomlinson v Congleton Borough Council [2004] HL will frighten of many more claimants, and is already having an impact on frivolous claims. It is by no means clear whether the data collected by the Task Force is comprehensive. Also, it is a government report, the recommendations in the report spell out the changes to come, or am I being cynical?

    Comment by MikeSouper — Thursday 10 June 2004 10:00 pm #

  3. how come??

    Comment by John S. — Monday 6 September 2004 11:51 am #

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