The Rt Hon Jack Straw has been granted leave to introduce a Bill to Parliament for its second reading on the 20th January 2012 to be referred to as the ‘Motor Insurance Regulation Bill’. It remains to be seen how much of the Bill will actually be enacted and whether the Government prefers to implement the core proposition through amendments to existing Bills before Parliament.
Whatever the mechanism for implementation, the current practice of the payment of referral fees for personal injury claims, seems likely to be brought to an end. It appears that a ban has cross party support following comments made by the Justice Minister and the announcement by the government that it intends to ban referral fees. It is possible that a ban could happen as soon as the second or third quarter of 2012.
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22/09/2011
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