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The Lord Chancellor, Lord Falconer has said that it is time to put an end to the "culture of fear" that has gripped the UK since the perception of a compensation culture has taken root. People have adjusted their lives to avoid being sued.

Schools no longer take children on beneficial school trips since a major teachers' union advised its members not to go on such trips as they may be sued in the event that a child should have an accident.

Volunteer activities have ceased for fear of lawsuits. The elderly cannot be taken out on excursions if they have a Zimmer frame for fear they will fall and the supervisor is charged with negligence. The Lord Chancellor wants to put an end to all of this and he hopes that the proposed New Compensation Bill will do just that.

One of the biggest problems has been the rogue claims management company that goes out in search of personal injury cases. The new bill will regulate these companies. The bill gives the Lord Chancellor the power to set up a regulatory body for the industry. It also will ensure that claims management firms are competent and are working in the best interests of their clients. The firms will be obliged to give clear advice to the consumer about the viability of a proposed claim, they will have to discuss options for funding the claim and they will be required to have a system in place for complaints should the case not proceed the way that their client feels is acceptable. As the claim firms will now be regulated, anyone acting as a claims management agent who is not certified to do so will be committing a crime and could face up to two years in prison.

Lord Falconer hopes that the proposed changes remove the fears of people. In a BBC article he said, "Individuals and organisations that adopt reasonable standards and procedures will not be liable and should not have to face unfounded claims." This aspect will be covered in the bill as well when it calls for a revamp of the common law on negligence so that only people who are genuinely at fault can be sued.

Guy Mansfield QC from the Bar Council told the BBC that, "We support the moves to regulate claims farmers, who have caused widespread public concerns about ambulance-chasing and the generation of frivolous and vexatious claims".

The insurance industry too supports the moves, but hopes that it is just the first step in a widespread rehaul of the personal injury compensation procedures.

Recent well publicised cases like the girl guide who burnt her fingers cooking sausages and was awarded £3500 and the school that forced the children to wear goggles to play conkers in case they were sued, have only added to the hysteria. The new bill will hopefully allow people to get back to doing the things they did before the fear of lawsuits took over.





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