If you have suffered a personal injury and need to make a claim for compensation, it is important to be aware of how the costs of your claim will be funded. To help you, we have provided a brief summary of the funding options available.
Legal Expense Insurance (LEI)
This is also referred to as 'Before the Event' insurance (BTE), and is insurance that you may already hold as part of Home or Car Insurance.
In 2007 the Ministry Of Justice carried out research and the report that was produced indicated that 48% of those who participated in the research held BTE Insurance as part of their car insurance, 35% had BTE Insurance as part of their Home insurance policy and a further 17% had the insurance as part of their Travel Insurance.
This insurance will cover any legal expenses in addition to costs for pursuing a personal injury claim and cost for legal expenses from the other side if your claim in unsuccessful.
If you contact your insurance provider, they will be able to confirm if your policy includes Legal Expenses cover and will if necessary, provide you with the appropriate claim form to enable you to make a claim using their funding.
After the Event Insurance (ATE)
In a personal injury case, this type of insurance policy is usually taken out as part of a “No win, No fee” arrangement and is normally implemented after an accident has occurred. Hence the term ‘after the event’.
If you need more help or advice, please call Legal Advice Helpline on 0800 612 3042.
If you make a personal injury claim through Legal Advice Helpline, our lawyers will normally take this insurance out on your behalf. This will ensure that you will not have to pay the cost of any insurance premium which will cover all legal costs including Expert witness or Court fees that may be incurred in your case as well the cost of the defendants legal expenses.
If your case is successful any legal fees generated in your case would be recovered from the other party. In the unlikely event that your claim is unsuccessful the ATE insurance policy will protect you from any of the legal fees. Either way with Legal Advice Helpline, you will never be liable for any legal fees and if your case is successful, you will always keep 100% of any compensation awarded.
Legal Aid
Legal Aid is Government backed financial assistance for certain types of legal cases and although it is not generally available for personal injury (unless under extreme circumstances) it is available for Clinical Negligence cases. Our specialist lawyers will be able to advise you on the criteria for Legal Aid, and where appropriate, will arrange a Legal Aid Certificate to be issued on your behalf if your case is eligible for funding in this way.
Self Funding Legal Costs
It is rare for a client to privately fund the costs of their
litigation, particularly in personal injury cases due to the rapid
development of insurance productssince 2000 which have been created to provide cover for legal costs.
If a private paying client wins their case, they will be in a position
to claim their legal costs and expenses from their opponent. However,
they should keep in mind that if they are unsuccessful, they will be
liable, not only for their own costs but those of their opponents as
well.
If you need further help and advice, please call Legal Advice Helpline on 0800 404 9496.