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Legal Expenses Extra

21/09/2011

Legal Expenses Extra not all it seems. Daily Express

Before the event (BTE) legal expenses insurance policies came about after the previous government withdrew Legal Aid in 2000.

The policies are now widespread and can be found as add-ons to most household and motor insurance policies. Typically costing from £20 a year, BTE policies may cover you for personal injury claims or if you have a claim against your employer (if you feel you were unfairly dismissed, for example) or for a boundary dispute with a neighbour.

“What the cover doesn’t provide is all-singing, all-dancing representation with the solicitor of your choice,” warns personal injury solicitor Chris Taylor, a partner at KBL Solicitors, based in Bolton, Lancashire. In fact, the insurer passes your details to one of its panel of solicitors, who will pay the insurer a referral fee for your case.

“There’s a limit on how much legal work the insurer will pay for and it will only pay for cases that are considered to have a reasonable prospect of winning,” says Taylor. While it can work for some people, not having BTE insurance isn’t necessarily a bad thing.

The Financial Ombudsman Service (FOS) received 635 complaints about legal expenses insurance last year and has already had 499 since this January.

“It can be valuable for some people but you need to ask exactly what you’re getting for the money before you sign up,” says Emma Ward of the FOS.