Legal expenses insurance: right to choose lawyer

The Legal Expenses Directive, Council Directive 87/344/EEC of 22 June 1987 on the coordination of laws, regulations and administrative provisions relating to legal expenses insurance, as implemented in the UK by the Insurance Companies (Legal Expenses Insurance) Regulations 1990 SI 1990/1159, provides a variety of safeguards for the holders of legal expenses (before the event, or BTE) policies.

The main concern is a conflict of interest which may arise where the legal expenses insurer is also the liability insurer of the person against whom the assured wishes to bring funded proceedings. To that end the Directive confers upon the assured the right to choose a lawyer. The scope of that right has given rise to much dispute, and was again before the Court of Justice of the European Union in Sneller v DAS Nederlandse Rechtsbijstand Verzekeringsmaatschappij NV [2013] EUECJ C-442/12.