Personal Legal Protection policies
typically cover the policyholder and members of
his or her household against the areas at greatest
risk of potential legal dispute:
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Problems
with employers |
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Personal injury
claims |
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Disputes with
suppliers of goods and services (including
holidays) |
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• |
Employment problems
and disputes with neighbours are typically
covered by most policies.
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Further covers can be included.
The most common method of purchase is as an
'add-on' to a household insurance policy. Policies
typically provide indemnity of up to €65,000
in legal costs per claim and sell for between €20
and €35. Very little Before The Event (BTE) insurance cover is sold
as 'stand-alone'.
Insurance companies too have been aware of the
need for legal expenses insurance, both to protect
their policyholders and to remove the excessive
costs associated with cases generated by claims
management companies. Their response has been
to include prepaid personal legal protection
as a standard part of their household policies.
Case insights
Employment dispute - An employee was dismissed
from her job following an injury. She was provided
with a solicitor to represent her at an Employment
Tribunal by her legal expenses insurers. The
Tribunal found that she had been unfairly dismissed
and ordered a compensation award to be paid to
her. The confidence gained due to winning her
case helped her obtain alternative employment.
Legal costs paid by the insurer exceeded €2,200.
Contract dispute - When a carpet supplier refused
to repair or replace a defective carpet the customer
called on their legal expenses insurers. They
arranged an inspection which confirmed the carpet's
defective status and began legal proceedings.
The supplier then agreed to replace the carpet.
Personal Injury - A policyholder tripped on
uneven paving in a shopping precinct and fell
badly spraining her wrist. When she claimed under
her legal protection policy the insurers took action to
recover compensation from the precinct owners through the
Personal Injuries Assessment Board.
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