Before you have chance to call them, there's a knock at your door and you find a representative of the other driver's insurance company writing you out a cheque to compensate you for injuries.

This scenario is becoming more and more frequent following road traffic accidents, and whilst it seems too good to be true, there can be serious consequences for accepting the offer there and then.

It must be considered why an insurance company would want to pay compensation for your injuries before you have seen a doctor or taken legal advice. It's been known for insurance companies to turn up at the accident scene and offer compensation before the broken glass has even been cleared from the road.

Insurance companies will tell you they're providing a proactive service. In reality, it comes down to money.

In exchange for payment there and then, the insurers ask you to sign a form stating that the offer is accepted in full and final settlement of the claim. As the offer is accepted in full and final settlement, there is no going back for any further payments – the claim has been concluded.

It's commonly accepted that the full extent of someone's injuries do not develop for a number of hours, if not days, after an accident.

So by accepting this offer before taking medical or legal advice, there's not only the risk of receiving less compensation than you're entitled to, but also the risk of not receiving the correct treatment required to help you make a full recovery.

An injured party is recommended to seek legal advice before settling any personal injury claim. This ensures that the claimant is receiving sufficient compensation for the injuries.

Claimant solicitors can ensure that independent medical advice is obtained for the injured party and provide advice to take the claim towards settlement, including assessing how much the claim is worth, whether treatment might be beneficial, and that all associated losses have been recovered.

There are a number of reported cases where claimants accept offers from third party insurers direct, but then their injuries proceed for a number of months or even years. Therefore, the claimant has received less road traffic accident compensation than they could be entitled to.

It's been reported that the Motor Accident Solicitors Society and the Association of Personal Injury Lawyers have asked members to provide evidence of insurance companies offering early settlement, in order to force the former Financial Services Authority to ban or regulate the practice.

In the meantime, the Association of British Insurers (ABI) launched a voluntary code of practice for insurers taking part in this practice. The ABI code says the claimant should be informed of their right to seek independent legal advice. Initial contact with victims should be by telephone, text message, email or letter, and should not involve fault party insurers attending the claimant's home.

If you've been contacted by a fault party insurers directly or require any other advice if you've been involved in a road traffic accident, please contact us on 03700 86 86 86 for free, no obligation advice.

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All documents should be read and used in accordance with the terms and conditions. This document is for your general information only and is not a detailed statement of the law. It is provided to you free of charge and should not be used as a substitute for specific legal advice. If you require specific legal advice please contact our helpline on 03700 86 86 86.

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