New Compensation Bill Will Bite

Compensation Bill

Claims Management Companies Regulation 

DCA Web Informnation

Part One: Provision relating to the law of negligence
The provision on negligence makes clear that when considering a
claim in negligence, in deciding what is required to meet the
standard of care in particular circumstances, a court is able to
consider the wider social value of the activity in the context of
which the injury or damage occurred.
Part Two: Provision of regulated claims management services
The Compensation Bill will provide the statutory framework for the
regulation of claims management services. The Bill will allow for
the Secretary of State to designate a regulator who will be
responsible for ensuring that claims management companies abide by
clear rules and a code of practice. A person providing claims
management services without the requisite authorisation (or if
exempted or subject to a waiver) will be committing an offence and
liable to a maximum of up to 2 years imprisonment. Those providing
claims management services will be required to give consumers
clear advice about the validity of their claim, options for
funding the costs and provide a complaints mechanism if things go
wrong.