Friday, November 2, 2007

The Compensation Act 2006 is an Act of the Parliament of the United Kingdom (2006 c. 29, long title, An Act to specify certain factors that may be taken into account by a court determining a claim in negligence or breach of statutory duty; to make provision about damages for mesothelioma; and to make provision for the regulation of claims management services. ) The Act received Royal assent on 25 July 2006.

The Compensation Act relates to the law of negligence and to that of statutory duty. It also contains provisions concerning damages for mesothelioma (contracted due to exposure to asbestos) and about the regulation of claims management services.

The Compensation Act 2006 is an attempt to protect claimants from 'cowboy' claims farmers by introducing a set of rules and regulations that all Claims Management Companies will need to abide by. As of the 6th April 2007 all Claims Management Companies must have been granted authorized status otherwise they will be trading illegally. An authorised company will be granted a license number to show the potential claimant and company buying the claim that they are authorized. The deadline for all companies who want to be guaranteed of authorization by the 6th April 2007 is set for the 16th February 2007. Should any company break the rules they will be putting themselves at risk of substantial fines or even a criminal conviction.