The Association of British Insurers (ABI) is leading an industry lobbying effort to include a referral fee ban in forthcoming legislation, The Guardian reports.

The industry is lobbying ministers to include the ban in the legal aid bill, currently making its way through Parliament.

The paper said that the referral fee business was estimated to be worth £3bn a year and has helped push motor insurance premiums up 50% over the last 18 months.

ABI assistant director James Dalton told the paper that he was optimistic a referral fee ban would be included in the legal aid bill. He added that such a ban would need to cover all those who currently receive referral fees from lawyers for passing on claims details, including garages, car repair shops and claims management firms as well as insurers.

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