29.06.09 | APIL pushes for full protection for compensation awards

The Association of Personal Injury Lawyers is backing an FSA plan to protect personal injury awards and settlements through the financial services compensation scheme.

The FSA is proposing to remove the £50,000 limit on deposits guaranteed by the scheme so that any personal injury award, however large, was protected. The move would depend on the support of other EU states.

“Injured people who receive large compensation awards depend on their damages to pay for their future cost of living and care, and it is crucial this money is fully protected,” John McQuater, president of APIL, said.

“Although the risk of a bank collapsing at the same time as a customer has a high, temporary deposit is relatively small, there is still a risk.

“The FSA proposal will provide extra, valuable protection and is a positive measure which should be applauded.”
APIL called for criminal injuries compensation awards to be included within the scheme.
The FCS is also proposing to extend the £50,000 limit on deposits to £500,000 in the case of divorce settlements, redundancy payments, bequests under wills and property bought or sold for dependent relatives.

However, the six month limit for claims would be extended to 18 months only for personal injury awards.

Extract from Solicitos Journal