ABI expects wide take-up of code on third-party capture

The ABI is to publish an industry code of practice for third-party capture, following a review by the FSA last year.

The voluntary code, due to be released next month, will oblige insurers to stress to claimants their right to seek independent legal advice. It will also set out the procedures insurers should follow in securing medical evidence.

But Motor Accident Solicitors Society chairman John Spencer called for a mandatory framework.

“The ABI’s proposed code is the wrong approach. It requires legislation similar to that regulating claims management companies. It is inconceivable that you can just have a voluntary code,” he said.

“Third-party capture has got to be adequately regulated and policed. If it can’t be … then it ought to be banned,” he added.

The ABI insisted insurers would take up the code. A spokesman said: “We want to highlight the fact that insurers are there to ensure that people get the possible deal and that they understand all their legal rights.”

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