What is a compensation provider?
Also known as claims management companies, a compensation provider performs a specific role in informing and advising the consumer in claims for compensation for certain kinds of injury including:
- Personal injury
- Mis-selling of financial products
- Criminal injury
- Industrial injuries disablement
Two important functions they provide are firstly, to help the consumer decide if they have an eligible case to pursue and secondly they can identify and refer the most suitable legal representative to handle claimant’s case.
Authorised compensation management companies undertake to follow a code of conduct:
- They will not engage in high pressure selling
- Give written information on how to pursue a claim and what it is likely to cost, before a contract is signed
- Make available a customer complaint scheme.
How to choose a compensation provider
Check that they are regulated by The Ministry of Justice
Read through the contract carefully. Check to see if there is a cooling off period before you sign it and also check for any points in the contract that seem unfair. The usual cooling off period is 14 days.
A useful role
Nobody anticipates being injured and having to go through costly and stressful litigation. The majority of the population are by no means experienced or expert in these things. Indeed, an understandable reaction would be “Where do I start?” A Compensation provider is a useful link between needing to start a claim and providing the information and advice to get it underway. In addition, they can refer suitable solicitors for the type of injury involved as it can be difficult for the claimant to know which kind of specialist legal advisor they need.
Personal injury compensation covers a wide area of law, ranging from road traffic accidents to medical negligence. The compensation provider company is a useful resource in helping a claimant to navigate through the process. Businesses must be authorised by the Ministry of Justice in order to practice. Specifically, the Claims Management Regulator oversees this area of commercial law.
Date Published: February 9, 2013
Author: David Brown