Third party capture is where the insurance company of the driver who was at fault in a road traffic accident contacts the injured victim to offer a settlement, often without medical evidence. The crucial problem with this is that accident compensation is settled on a full and final settlement basis so if the accident victim later finds their injuries were more serious than first thought, the accident victim cannot go back to the insurer and ask for increased compensation. So third party capture often leaves accident victims under-compensated.
The Northern Ireland Law Society’s report on Third Party Capture found:-
- Injured accident victims often approached in the immediate aftermath of an accident were not being given time to consider the offer of compensation and were settling without having a full understanding of what they were agreeing.
- In a number of cases, insurers were encouraging injured accident victims to settle without medical evidence, placing the accident victim at a disadvantage and resulting in reduced compensation payments.
- Injured accident victims were being discouraged from seeking legal advice even when accident victims were clearly unaware of their legal rights which resulted in accident victims being under-compensated.
Recommendations made include:-
- Introduction of measures to protect against settlement of an accident claim without medical evidence, particularly where the accident victim has suffered significant injuries.
- Injured accident victims be informed of their right to seek advice from independent legal advisor of their own choosing.
- There should be a gap of at least ten days after the accident before the insurer is allowed to make direct contact with the injured accident victim.
- When an offer of compensation is made, the injured accident victim should be given at least five working days from the date of the offer before the insurer gets in contact again.
- Special measures to protect accident victims who are children.
In England, Linda Riordan MP, has pressed the Financial Services Authority (FSA) to launch an investigation into third party capture. The FSA will soon decide whether to go ahead.
If you have been injured in a road traffic accident and are contacted by an insurance company who are offering compensation, you should seek legal advice from lawyers experienced in accident injury claims, before agreeing compensation.
