No Win No Fee - What Everybody Ought to Know About No Win No Fee Claims

Unless you have been living in a sound-proof chamber in the depths of the Pacific Ocean, you will be aware of the 'no win no fee claims' ads which currently crowd our airwaves.

However, while the term 'no win no fee' is now commonly recognised, most people still do not know precisely what it means, and how it affects personal injury claims.

In the interests of informing you of your options should you, a member of your family or your friends suffer an injury which was someone else's fault, we've put together some information to help you understand what the term 'no win no fee' really means, and how you can use it to help you through a tough time.

What does 'no win no fee' mean?

Conditional fee agreements, commonly referred to as 'no win no fee' agreements, were introduced in the UK in 1995. Legal aid, a type of funding for people unable to afford legal representation, was abolished for personal injury cases in 2000, and the no win no fee system was extended to fill the gap. 'No win no fee' means is that if the claimant does not win their case ('no win') they will not need to pay ('no fee').

Then who pays for all the court costs, fees and disbursements?

With the no win no fee system, all costs in personal injury cases must be covered by the losing side, and the claimant takes out insurance, arranged by the solicitor, to cover themselves in case they lose.

What about the solicitor?

The solicitor must take on the case on the understanding that, should they lose, they will not be paid for their work. On the other hand, if the case is successful, the solicitor will be entitled to claim their fee along with an extra uplift or 'success fee'.

Who pays for the compensation if the case is won?

If the client wins their case, either the courts or the losing side's insurers will pay damages to the client. On top of this, the insurer will need to pay legal costs and expenses.

Will the claimant be left with any costs at all?

With most no win no fee arrangements, the client will not have to pay anything at all, and will be able to claim 100% of any compensation they have been awarded.

However, anyone who chooses to make a no win no fee claim should double check with their solicitor or claims company that this is the case, as some companies will still have hidden costs.

How to make a no win no fee claim

There are certain things to remember if you decide to pursue a no win no fee compensation claim for a personal injury. Follow these five points and you will be on your way to making a successful no win no fee claim.

1) Claims must be initiated within 3 years of an accident. Exceptions to this include certain diseases such as asbestosis, which may not appear until years after exposure to asbestos.

2) It is best to make your claim straight away, so that evidence can be collected to support your claim and you receive your compensation quickly to help with recuperation costs and potential loss of earnings.

3) Try to record the circumstances around your accident as soon as possible, such as date, time, how it happened, witnesses and their names and contact details, and the symptoms you are experiencing as a result of your injury.

4) Don't settle for compensation too early without expert advice, or you may be receiving a fraction of the compensation you deserve.

5) Get expert advice from a specialist solicitor - for most people, this is essential to making a successful claim.