LIVERPOOL, UNITED KINGDOM -- (Marketwire) -- 02/07/10 -- Leading accident compensation specialists David Phillips and Partners are warning that many insurance companies are abusing their position in order to gain an unfair advantage in processing accident claims. The solicitors, who have offices across the country, are calling for greater regulation, in order to prevent insurers from being able to contact clients directly, before they have had chance to seek legal representation.

Unlike solicitors, who have to wait to be approached, insurance firms can contact clients directly after an accident. Many companies have been using this to their advantage by offering claim settlements before the victim has had chance to seek legal advice. In most cases, the figure they are offered is much less than they could expect to receive otherwise. In some instances, insurers have been guilty of bullying their clients into accepting offers against their will. This practice, known as 'Third Party Capture' is currently not illegal, however, there are calls to tighten legislation in order to give consumers a fairer deal.

The Association of British Insurers has proposed a voluntary code, which would see companies who do not comply with legislation being reported to the FSA. The FSA, however, have stated that they have no plans to fully regulate third party capture but rather wait for an "industry led solution". This has led to real concerns that insurers will continue to abuse the system. Stephen Higham, a spokesperson for David Phillips and Partners, explains:

"Solicitors have a duty to put their client's interests first, while insurers have a contractual obligation to their insurer, not to the innocent victim. For this reason, we are deeply concerned that insurers are able to abuse their positions of power to under compensate innocent victims."

"We would advise anyone who is involved in an accident to under no circumstances accept an offer of compensation from their insurers without first consulting a solicitor."

No win no fee solicitors David Phillips and Partners offer a free, no obligation consultation with accident victims. If they decide to take on a case, they will recover costs from the other side, which means the claimant will receive 100% of their compensation.

About David Phillips & Partners Solicitors:

- Offices throughout the UK including London, Liverpool, Manchester and Birmingham.

- Regulated by Solicitors' Regulation Authority (SRA Ref#: 73353).

- Founded in 1982 and has over 25 years legal experience in the following specialised areas; criminal defence, accident claims, actions against the police, property conveyancing, wills and probate, matters involving children, motoring offences and prison law matters.