28 February 2013
How to win friends and influence Access to Justice
How to win friends and influence access to justice
On the eve of the Judicial Review into the reduction of
fixed fees payable to Claimant Lawyers representing injured motorists - it is perhaps timely to read that Peter Wood,
and his fellow investors in E-sure, stand to share a fortune of as much as £500
million when E-Sure is listed on the stock market.
Firstly – don’t get me wrong – I think that Peter Wood is an
exceptional entrepreneur, who has helped transform the general insurance
business.
My difficulty here is squaring the circle that is – if the
insurance lobby are right – and all motor insurers are now something akin to
charities – working for no reward – at the mercy of Claimants, Claims Management
Companies and Claimant Solicitors – how is
it that E-Sure, in the depth of a recession, report a 110% increase in pre tax
profits, to £115.5 million last year. Or, for that matter, how Direct Line, a
company founded by Peter Wood, increased the operating profit of its Motor
Insurance division to £261.8 m.
If the general insurance business is so poor – the victim of
a ‘compensation culture’ - then why is there an appetite in the City for a
flotation that is expected to value E-Sure at between £600 million and £1
billion?
Perhaps another question for the eve of the Judicial Review
would be – how is it that the Insurance Lobby have been so successful in getting
their message across to Government. Why is it that the government has refused Freedom
of Information requests into what was discussed, promised and agreed at the Downing
Street Summit between government and the insurers?
Perhaps you really do get what you pay for…………..
If you want
to know where Chris Grayling , Justice Secretary stands – here is how he
announced his consultation process ‘Grayling said: ‘For too long honest drivers have been bearing
the price of a system that has been open to abuse and it is time for that to
change.'
Sounds like his mind is made
up before the process even began? Why would that be?
Perhaps it comes back to the success of the insurance lobby.
If you want your voice heard, and your interests represented at the highest
level, how would you go about that?
Perhaps you would try and buy some influence. When Chris
Grayling was Shadow Home Secretary, Peter Wood, founder of E-Sure, founder of
Direct Line (you remember him) paid
£71000.00 to run Grayling’s office.
According to an investigation by the Guardian, financial
firms with insurance interests have given the Tories £5.4m in the last decade,
£4.9 m since Cameron became leader.
Calm down dear – it’s only access to justice.
And why does this matter? The reduction in fixed fees, which represents a 60% cut in legal fees payable by the negligent party, is just part of a raft of measures being driven through by this government that will drastically reduce access to justice for the innocent injured party. The government is proceeding with these reforms directly against the advice of their own experts. There is a driving force here that is creating a perfect storm for the injured victims, and how they will access justice in the future.
The problem with Access to Justice is once its gone, its gone.
Gavin Hannah
