No Win, No Fee Claims Explained

If you’ve been injured in a cycling accident, making a personal injury claim might feel like a financial risk. Most cycling injury claims are funded through a ‘no win, no fee’ arrangement, also known as a Conditional Fee Agreement (CFA). This means you can pursue compensation without paying any upfront fees or legal costs.

What is no win, no fee?

A no win, no fee agreement, also known as a Conditional Fee Agreement (CFA), is the most common way to fund a personal injury claim without any upfront costs. You won’t need to pay your personal injury solicitor, or incur any other costs, unless your claim is successful.

This approach ensures that financial concerns don’t prevent you from pursuing compensation for injuries caused by another party.

How does a no win, no fee claim work?

When you make a no win, no fee claim, your solicitor agrees to represent you without charging any fees unless you win your case.

If your claim is successful, your solicitor will receive a pre-agreed percentage of your compensation as their 'success fee'. This arrangement allows you to pursue your case with confidence, knowing that you won’t be left with legal fees if your claim doesn’t succeed.

No win, no fee removes the financial risk of pursuing a cycling injury compensation claim.

What do I pay if I win my claim?

If your claim is successful, your solicitor will receive a payment known as a ‘success fee’. This fee is a percentage of the compensation you receive, which compensates your solicitor for the risk they take by agreeing to represent you. The success fee is agreed upon before you sign the Conditional Fee Agreement and ensures that you’re never out of pocket when making a claim.

Success fees are legally capped at 25% of your compensation to protect you from excessive legal costs. This cap was introduced by the Legal Aid, Sentencing and Punishment of Offenders Act 2012, which reformed the legal system to make it more affordable and accessible.

So I lose 25% of my compensation

Not exactly. Although a success fee will be deducted from your compensation, calculating your final award isn’t as simple as subtracting 25%. The Court of Appeal has ruled that compensation for general damages (such as pain and suffering) is increased by 10% for claims funded by a Conditional Fee Agreement. This increase helps offset the impact of the success fee deduction.

No win, no fee example:

Let’s say you were injured in an accident where a car clipped your bike. A solicitor may accept your claim on a no win, no fee basis. Here’s how your compensation might break down:

Could there be any other costs associated with making a claim?

In some cases, you might be responsible for additional costs, even if your claim is successful. While the defendant typically covers some of your legal fees, they may not be required to cover everything. For example, you could be responsible for costs like medical reports or legal protection insurance.

Your solicitor will clearly explain any potential costs upfront, so you know what to expect before moving forward with your claim.

Would I have to pay these costs?

A central part of any no win, no fee claim (regardless of which solicitor you choose) is After the Event Insurance (ATE).

When you start a claim, your solicitor will take out ATE Insurance on your behalf to protect you from additional costs that may arise during your no win, no fee claim.

This type of insurance is designed to cover expenses that aren’t recoverable from the defendant if your claim is successful, or any costs that might be payable if your claim is unsuccessful like the cost of medical reports, expert witnesses, or other disbursements that the defendant might not fully pay for.

ATE insurance also protects you from the risk of having to pay the defendant’s legal costs if your case doesn’t succeed.

The ATE insurance premium is only payable if your claim is successful, and it is deducted from your compensation award along with the solicitor’s success fee.

Are there any alternatives to no win, no fee?

While no win, no fee is the most common way to fund a personal injury claim, there are a few alternatives you could consider:

Legal Aid

Legal Aid is no longer available for personal injury claims, so no win, no fee remains the primary funding method for most people.

Self-funding

You could choose to fund your own case, either by agreeing on a flat fee or paying your solicitor by the hour. However, this can be risky, as you would be responsible for all legal fees, even if you lose your case. You may also have to cover the defendant’s costs if you lose.

Legal Protection Insurance

You may already have before the event insurance (BTE), more commonly known as legal protection insurance, through your home or motor insurance policy.

This may be an option, but your insurer might pressure you to use their appointed solicitor. It’s important to understand the implications of using an insurer-appointed solicitor, as they may not always act solely in your best interests.

By choosing your own independent solicitor, you can be confident that they will focus entirely on achieving the best possible outcome for you, without any commercial pressure from insurers.

Trade Union Funding

If you’re a member of a trade union, you might be eligible for legal protection insurance through your membership. Speak with your union representative to check if you’re covered for personal injury claims.

Conclusion

A no win, no fee arrangement offers a risk-free way for injured cyclists to pursue compensation, without the worry of upfront legal costs. It ensures that you can access expert legal representation, regardless of your financial situation.

If you’ve been injured in a cycling accident, get in touch with us today for a free, no-obligation consultation and let us help you get the compensation you're entitled to.