When an injured party starts a personal injury compensation claim, they will generally enter into an agreement with a solicitor which means they are provided with representation without having to pay any costs or fees up front. This type of representation is provided under a Conditional Fee Agreement (CFA), more commonly known as a “no win no fee” agreement.

Under a Conditional Fee Agreement, a client is provided with legal services based on the merits of their case – if a solicitor carries out a risk assignment of their personal injury compensation case, and determines that there are good prospects of success, the solicitor will initiate proceeding under the “no win no fee” agreement.

The solicitor representing the claimant will not get paid if the claim for personal injury compensation is not settled successfully; this may mean that the claimant is liable for paying the costs incurred by the other side.

Most cases of this nature will be covered by an after—the –event insurance policy which means the claimant is protected from having to pay a large bill in the event their claim for personal injury compensation is rejected or not successful. When a claimant is choosing a solicitor to help them make a claim, they should discuss all of the available payment options to ensure that the client fully understands the way in which these agreements work.

In terms of cancelling this type of policy, there may be some costs attached. If a solicitor advises a claimant that they are unlikely to settle their claim successfully, the client can usually withdraw from the agreement without having to pay any costs. If a client decides not to make a claim for any other reason, they may have to pay for the work that has been completed on their case up to the point of cancellation.

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