After the Event Insurance and the Premium Payable
When pursuing a claim for personal injury compensation, the premium charged for after the event insurance is normally on a ‘deferred basis’. This means that it will only become payable at the conclusion of the claim itself.
In addition most policies contain a clause which confirms that the premium will not be payable in the event that the claim is unsuccessful. It is effectively No Win No Fee insurance.
It is important that you fully understand when and in what circumstances the premium will become payable before entering into any agreement.
Where your claim is successful it should be possible to recover the cost of the After the Event Insurance from the negligent party if the policy was obtained before 1st April 2013. Where the policy was obtained after this date the premium cannot be recovered from the other party and may have to be paid out of the compensation you receive. Special rules apply to mesothelioma compensation claims and also clinical negligence claims.
The premium charged for an after the event insurance policy will vary depending upon the level of cover, the nature of the claim and the risk that it may not succeed. The greater the risks involved the higher the premium will be. In some cases the premium will be ‘staged’ so that it increases as the claim progresses. This is because the associated costs and disbursements will also increase.
At Sintons our personal injury specialists are able to advise you on all issues relating to the funding of your claim and on suitable After the Event insurance where this is necessary.
Full advice will be provided regarding the need for such insurance and the most appropriate policy in the circumstances. All personal injury claims are pursued on a No Win No Fee basis although it will not always be necessary to obtain After the Event Insurance.