A Modern Compensation System: Moving from Concept to Reality

A report by Norwich Union Insurance

The problem with the UK’s compensation system

Since the appearance of Access to Justice on our statute books in 1999 the “cracks” in its market for delivery have been apparent. As the Institute of Actuaries put it in their report The Cost of Compensation Culture 2003: “A Practice Direction describing the procedures around CFAs came into effect from 3 July 2000. However, much of the detail of how the new scheme should operate has been left to be established by test cases. For example, at point in legal proceedings is it reasonable to pursue a case on a “no win no fee” basis? If the party who is being sued agrees straight away that he is liable and happy to pay damages, is it fair that they have to pay a success fee uplift and the cost of an ATE (After the Event) premium?”