WHAT IS LEGAL EXPENSES INSURANCE AND DO I NEED IT?
LEGAL EXPENSES INSURANCE (LEI)
People often ask what is legal expenses insurance, and do I need it?
Legal expenses insurance (often called LEI by accident solicitors) is very common nowadays.
There are two main types of LEI:-
- BEFORE THE EVENT LEGAL EXPENSES INSURANCE (BTE LEI)
This form of LEI is taken out before the event that would give rise to a claim being made. It is particularly common as an “add on” to a motoring policy and gives the policyholder legal expenses protection in the event of an accident occurring at some future time.
- AFTER THE EVENT LEGAL EXPENSES INSURANCE (ATE LEI)
This type of LEI is taken out after the event giving rise to a legal claim has arisen. The policy is designed to provide legal expenses cover in respect of a legal claim such as a personal injury claim.
Personal injury solicitors have a duty to investigate whether a client already has a suitable policy of Before The Event Legal Expenses Insurance in place before arranging the funding of the accident claim. People don’t always know that they have the benefit of this type of insurance because it is often sold by insurance companies as part of a wider package of cover. We therefore need to check insurance paperwork to see whether a client has Before The Event Legal Expenses Insurance.
If they do have Before The Event Legal Expenses Insurance then we will contact the insurers to let them know we are dealing with the injury claim. Some LEI companies like people to instruct their own panel solicitors, often because they have a financial tie-in with those solicitors. However, consumers do have freedom of choice and are entitled to instruct injury solicitors of their own choosing. We are also frequently contacted by people who have been pressured into allowing an insurer’s panel solicitor to deal with their claim but are then unhappy with the service they are receiving. In these circumstances clients are entitled to change solicitors. The LEI companies cannot prevent people exercising their freedom of choice and allowing us to take over their personal injury claim. We are able to provide a more personal and individual service than some of the very big injury claims companies, who deal with cases on a massive volume on behalf of the insurers.
If the client does not have Before The Event Legal Expenses Insurance then we can arrange for After The Event Legal Expenses Insurance to be obtained. After The Event Legal Expenses Insurance protects the injury claimant from the risk of a costs award in favour of their opponent.
We make no charge to our injury clients for taking out After The Event Legal Expenses Insurance. If the compensation claim is lost then the premium does not have to be paid. If the injury claim is won then we recover the premium from the other side. Either way, there is no risk to the client who, under our NEW DEAL, is entitled to 100% of any compensation awarded.
People ask whether BTE LEI is worth having. In our experience BTE LEI for car accidents is an expensive and often an entirely unnecessary add-on. Insurers stand to make a double profit by charging people for the insurance and then making money from their panel solicitors in referral fees when a claim is made. As we are always willing to deal with personal injury claims on a no win-no fee basis (with the support of ATE LEI) there is no real requirement for people to incur the expense of taking out BTE insurance.
So, if your motor insurers attempt to add-on BTE LEI cover and charge you for the privilege you might want to think again. It might make more sense to keep your money, knowing that if an accident does occur you can always ask Slee Blackwell Solicitors to deal with your injury claim on a no win-no fee basis.
Call us now on 0808 139 1590
Or email us at lee.dawkins@sleeblackwell.co.uk
