How No Win, No Fee Claims Work?
If you’ve been injured in a cycling accident, you might be worried about the financial risk of making a personal injury claim. However, most cycling injury claims in the UK are funded on a ‘no win, no fee’ basis, also known as a Conditional Fee Agreement (CFA). This type of arrangement allows you to pursue compensation without any upfront costs.
What does ‘No Win, No Fee’ mean?
A no-win, no-fee agreement means exactly what it says: you won’t pay any legal fees if your claim is unsuccessful. This gives you peace of mind and access to justice without financial risk.
If your case is successful, a pre-agreed percentage of your compensation will be deducted to cover your bicycle accident lawyer’s fees. This is typically capped by law, ensuring you receive the majority of your compensation.
No win, no fee example:
Let’s imagine you were injured in a cycling accident where a car clipped your bike, and your bicycle accident lawyer takes on your case on a no win, no fee basis.
Here is a simplified example of how your final compensation might be calculated:
Total Compensation Award: £25,000
- General Damages: £15,000 (for your injuries and pain and suffering).
- Special Damages: £10,000 (for your financial losses, such as lost wages, medical expenses, and the cost of a new bike).
- Less Solicitor’s Success Fee: £6,250 (a 25% deduction from your total compensation)
Total Compensation You Receive: £18,750
As you can see, you would receive the vast majority of the compensation without having to pay any legal costs upfront. Your bicycle accident lawyer will always be transparent about these figures from the very start of your claim.
Could there be any other costs associated with making a claim?
Sometimes, you may be responsible for additional costs, even if your claim succeeds. While the defendant usually covers some of your legal fees, they may not cover everything. For example, you might be liable for costs related to medical reports or legal protection insurance.
Your bicycle accident lawyer will always explain any potential costs upfront, ensuring you have a full understanding before you proceed with your claim.
Would I have to pay these costs?
A crucial part of any no win, no fee claim is After the Event (ATE) insurance. Your bicycle accident lawyer will arrange this policy for you to protect you from financial risk.
ATE insurance covers costs that are not recoverable from the defendant, such as fees for medical reports or expert witnesses. Most importantly, it protects you from having to pay the other side’s legal costs if your case is unsuccessful.
The premium for ATE insurance is only paid if your claim succeeds. It is then deducted from your final compensation, along with your solicitor’s success fee. This means you have no upfront costs and are fully protected throughout the legal process.