CLAIMS for industrial deafness are fast becoming the new “cash cow” for lawyers specialising in settling such cases, the Association of British Insurers is warning.
Lawyers can on average recoup around £10,500 per deafness claim, compared with £500 for whiplash cases, the insurance industry watchdog believes.
It is concerned that insurers are paying over the odds when it comes to legal fees associated with industrial deafness claims, caused by working environments, following a reduction of fixed legal costs associated with whiplash injuries last year.
“Industrial deafness claims are fast becoming the new cash cow for claimant lawyers, eager to make up for last year's reduction of fixed legal fees in the Claims Portal,” ABI head of motor and liability James Dalton said
“Insurers are here to pay fair compensation to genuine claimants. But we need to tackle the increasing number of industrial deafness claims by ensuring that claimant lawyers’ excessive legal fees are made more proportionate.”