Website targets ‘no win no fee’ culture

A NEW online business is seeking to cut personal injury lawyers and accident management companies out of the claims process.

Itsmyclaim.com says it allows claimants to liaise directly with defendants, cutting out the middle men and the costs they incur such as referral fees.

The website will make money from advertising but it is also seeking to forge commercial agreements with organisations such as supermarkets that have seen personal injury payouts spiral in recent years.

Users input the details of an accident to lodge a claim and wait for a response. A spokesman for the service said users could hire a lawyer but the emphasis is on them using the site to reach an agreement.

Itsmyclaim.com is backed by a consortium of North West-based investors including John Hinnigan, who has been involved with a number of technology-based companies as either chairman or director. As well as being a director of itsmyclaim.com, he is also chairman of Veritape, a Manchester company specialising in call recording technology.

Founder and chief executive Mark Brickles said: “The move to simplify the claims process and put the consumer in control of their affairs breaks the hold that No Win No Fee companies have, resulting in the hiking up of legal costs unbeknown to the claimant.

“The service offers consumers access to justice when dealing with compensation claims in an expedient manner and one which also benefits the defendant company.”
 
In 2007, it was calculated that £4.4bn was paid out in legal costs for personal injury claims, while the Association of British Insurers reported that, for claims below £5,000, every £1 in compensation led to 93p of additional claimant legal costs.

A spokesperson for the Association of Personal Injury Lawyers said: “It is difficult to comment about this company without knowing more about it, as its origins are not transparent from the website.

“An obvious concern, however,  is that it portrays being a litigant in person as an easy option, when in reality it can often be far from straightforward.

“The site also encourages people to deal direct with the defendant which, as we all know from stories about third party capture, can lead to under-settling of claims.”