Following a late amendment to the Criminal Justice and Courts Bill to provide for striking out claims where there is a finding of fundamental dishonesty, the House of Lords have proposed a further clause to formally prohibit the offering of inducements for personal injury claims. This follows on from the recommendations made by the Transport Select Committee in their latest report.

The clause will prohibit any regulated person (defined as any person regulated by the General Council of the Bar, Institute of Legal Executives, Law Society or any other body to be set up), from offering another person a benefit for the purpose of inducing them to bring a civil claim for personal injury.

The inducement does not need to be financial, but will exclude anything related to the provision of legal services. It will be considered an inducement if it is intended to encourage a person to make a claim - regardless of when, or by what means, the offer is made.

The sanction for breach will be determined by the regulator, being the professional body to which the regulated person belongs i.e. the General Council of the Bar, the Institute of Legal Executives or the Law Society.

While the clause will be subject to further parliamentary scrutiny, the industry will no doubt welcome the proposal as an essential step toward tackling fraudulent claims.