“Ambulance chasing” lawyers are not to blame for compensation culture as it is the way the system is set up that encourages claims, a Supreme Court judge has suggested.
Lord Sumption said that the people making claims could not be accused of greed when it is the current law which is “extraordinarily clumsy and inefficient” and the system of blame “often misses the target”.
He said: “If the law entitles the victim of an accident to compensation, it ill becomes us to criticise him for knowing it and claiming.”
A rise in the number claims, which has been in part blamed on no win no fee lawyer services and cold callers encouraging people to sue, has led to rising insurance costs particularly in the motoring industry. There is also concern about the increasing cost for the NHS and fake claims.
Earlier this year, a group of tour operators wrote an open letter to the Ministry of Justice in which they warned that Britons face being denied access to certain resorts or hotels abroad because of a surge in fraudulent compensation pursuits for holiday illnesses such as food poisoning.