How 'Third-Party Capture' could affect your injury claim and limit your compensation

If you have been involved in a road accident, you may be contacted by the other driver's insurance company before you have had chance to seek you own legal advice.

The insurance company may attempt to convince you to give them control of the claim. The insurer will argue that the claim will be settled faster, and the process will be simpler, as they do not require as full medical report or a detailed investigation.

This practice is known as 'third party capture' and is often operated when the defendant's insurance company knows their client is at fault and seeks to reduce the amount of compensation they must pay.

Insurers taking control of your claim

By convincing the claimant to allow them to have control of the claim, the insurer will be able to eliminate legal costs to a solicitor and will be able to control the costs of repairs and hire cars. Although this will make the process faster, it also makes it a lot easier for the insurer to manipulate the costs and potentially under-settle a claim.

The insurance company will often offer to give the individual their settlement amount immediately. However, it is impossible to accurately calculate what this amount should be without a medical examination report.

The insurer will rely on a very general estimate, which have little bearing on the claimant's injuries or costs, and could be a lot less than a claimant is entitled to.

Efforts to regulate third party capture

In recent years, the Association of British Insurers (ABI) has attempted to regulate the practice of third party capture.

The ABI code states that the opposing insurance company should offer assistance rather than 'capture'. The code also states that insurers should recommend that a claimant seeks independent legal advice when dealing with certain claims, including claims where there is a conflict of blame and where there are causation issues.

The upside of third party capture?

The practice of third party capture can prove useful to some claimants if they are looking for a quick and easy settlement, but may see them losing money they are entitled to.

This process may be more suited to cases where there are only minor injuries, and the actual difference between the insurer's rough estimate, and an accurate assessment, is small in terms of real money.

If a person's injuries are more serious, or the extent of their injuries and length of recovery is unknown, a medical examination should be arranged in order to pursue a more accurate compensation settlement.

If you have been approached by the other side's insurers before you have had a chance to consider your options, take your time. Do not be pressured into a quick decision.

To talk about your options with a specialist solicitor, you can arrange a free consultation on 0800 376 1001 or arrange a callback.

Author:
Chris Salmon, Director

About the author

Chris Salmon is a co-founder and Director of Quittance Injury Claims. Chris has played key roles in the shaping and scaling of a number of legal services brands and is a regular commentator in the legal press.