No win no fee

No Win No Fee – what does this really mean?

No Win No Fee Agreements are commonly used nowadays to fund accident claims.

These Agreements are backed up by a policy of insurance so that if all goes wrong the client actually makes no payment towards their legal fees – the insurance covers the risk instead.

As with all insurance there are conditions attached and we have to be reasonably confident of your chances of success before we can sign you to a “No Win No Fee” Agreement. The premium for the insurance is deferred to the conclusion of your case.

Of course, if you win your case the opponent will pay our legal costs. The deferred premium for the insurance is also recoverable from the opponent in these circumstances.

If you lose then the insurance pays out to the opponent for the legal costs they have incurred.

Win or lose, you don’t pay a penny for the cover or your case.

You may be entitled to cover under Legal Expenses Insurance (LEI).

This type of cover is usually attached to a policy of insurance you already have such as your household insurance or car insurance. Often the premium is hidden within the main insurance costs and so often clients don’t even realise the benefit exists. The premium is usually a very small proportion of the overall premium for the policy but when it is needed it can offer big benefits to you.

Again, conditions apply to the type of claims that are covered by such additional insurance but in principle the cover leaves you protected against the risk of escalating legal costs should you lose your case. If you win, your costs are recoverable from the losing opponent.

Before you come to see us it is worth checking whether you have Legal Expenses Insurance attached to your general insurance policies – it can be a real bonus to find you are covered!

Private Funding

The availability of “No Win No Fee” Agreements and Legal Expenses Insurance means that it has become incredibly rare for clients to fund litigation from their personal reserves.

If other funding avenues don’t exist it is usually because the case itself has some significant risk of failing, and let’s face it, if that’s the case what’s the point in risking you own money to fund litigation that gets you nowhere?

Costs based on time incurred is the usual method of private funding.

Motor Insurers’ Bureau (MIB)

It is an unfortunate fact that some drivers don’t have car insurance when they take to the road. If they cause an accident and you suffer losses and injuries that would potentially leave you out of pocket. To cover that risk the Motor Insurers’ Bureau exists.

The MIB is financed by motor insurance companies paying part of their premiums to a special Government supported fund. This then compensates innocent victims of road traffic accidents where the culprit is an uninsured driver.

The funding available is fairly limited and so only a set amount of legal costs is recoverable but usually all other expenses such as medical reports and court fees are covered.

Criminal Injuries Compensation Authority (CICA)

Again, this scheme exists to compensate innocent victims – in this case victims who have suffered an injury as a result of a crime being committed. Commonly this will be injury suffered during a serious assault or affray.

Due to the nature of the scheme you usually have to cover all or part of your own Solicitor’s costs and disbursements, even if you win. The benefit though is that a Contingency Fee Agreement may be possible which would pay out a percentage of your compensation to cover the legal expenses incurred.