A LAW firm is offering to pay people £600 for a new injury claim, amid the controversy over record insurance premiums.
GT Law, which is advertising the referral fee on black cabs in Sheffield, says that it will pay the whopping sum just two days after deciding to take on a case.
People are urged to call the firm with details of a friend or relative who has been injured in a car crash or fall.
A GT Law spokesman said the aim was to cut out the middle man – car insurers and claims management companies who sell the vast bulk of leads – and pay the public direct.
He said: “After taking details from a referrer we’ll call the potential client within the hour and provided they check out and we take the case, we will pay them the referral fee.
“It’s perfectly legal, it’s just that it’s a new approach – trying to cut out the insurers and pay the money direct to the public.”
Lucrative referral fees are being blamed for a rise in the number of claims and a record 40 per cent rise in the cost of a typical comprehensive car insurance policy over the last year.
The referral fees are also thought to have fuelled a surge in spam text messages urging people to put in a claim ‘for the accident you had’.
More than a year has passed since a damning report from Lord Jackson, commissioned by the Government, recommended a total ban on referral fees, to rein in a growing compensation culture.
A spokesman for the Association of British Insurers said that they supported the move.