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07th January 2011

Compensation 'reward' claims ban

The Government plans to ban firms from offering cash rewards to entice people to claim compensation after minor slips, trips and falls, it has been revealed. 

The move, part of measures designed to tackle Britain's "damaging" compensation culture, will prevent firms from offering money to encourage people to make accident claims in the belief they could be in line for large payouts.

Prime Minister David Cameron insisted the Government would stop the promotional activities of claims and management companies that helped fuel the compensation culture in a foreword to former Tory minister Lord Young's report on the issue in October.

He said: "A damaging compensation culture has arisen, as if people can absolve themselves from any personal responsibility for their own actions, with the spectre of lawyers only too willing to pounce with a claim for damages on the slightest pretext.

"We simply cannot go on like this. We're going to curtail the promotional activities of claims management companies and the compensation culture they help perpetuate."

Kevin Rousell, head of regulation at the Ministry of Justice, said: "We have accepted Lord Young's report and plan to take the necessary steps to ensure that the concerns raised about the marketing practices of some claims management businesses are tackled at the earliest opportunity.

"This consultation is an important step towards tackling irresponsible marketing."

IBB Solicitors has built a reputation for quality of service in pursuing compensation in cases involving accident, illness or death. If you would like advice on personal injury issues, you can contact a member of IBB's Personal Injury team, call us on 08456 381 381 or email enquiries@ibblaw.co.uk.

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