New code of practice for insurers
A new voluntary code of practice has been introduced for the insurance industry in which those companies that sign up agree not to make unsolicited visits to an accident victims home or in hospital.
But under the new code, introduced by the Association of British Insurers (ABI), companies will be able to cold-call them to offer an early settlement of their claim.
The practice of offering early settlement to a claim is called 'third party capture,' and normally a tactic used when an insurer's policyholder is at fault in a car accident.
It is also used for accidents at work, and in public liability claims where there is personal injury involved,.such as tripping on a pavement.
Under the terms of the voluntary code, insurance companies will be able to call, text, email or send a letter to a claimant.
If the claimant does not respond, the company should not attempt contact again.
Muiris Lyons, president of the Association of Personal Injury Lawyers (APIL), warned it was difficult for people to judge whether a settlement offer was fair.
He said: "We have sent evidence to the Financial Services Authority to illustrate occasions when insurers have quite clearly attempted to under-settle claims in these circumstances. We have also heard about quite shameful pressure to settle being brought to bear on vulnerable and injured people.
And he added: "The insurance industry is now euphemistically calling this 'third party assistance', but what many people won't realise or remember, often because they are shocked and vulnerable at the time, is that insurers' primary duty is to their shareholders, not the injured person.
"This obviously puts them in direct conflict with the victim."