PERSONAL injury compensation can be controversial. Cases such as that of Brian Piccolo, who is chasing £1.5 million in damages after slipping on a petal outside a florist’s, provoke widespread disbelief.

Readers of Times Online have slammed today’s compensation culture as “pathetic” and “criminal”, and in a 2005 speech, Tony Blair expressed a widely held view when he said: “Sometimes we have to accept – no one is to blame.” Unsurprisingly, lawyers assert that much of the debate is misinformed. Martin Bare, of the Association of Personal Injury Lawyers (APIL), says that the number of claims is falling: “Where someone is injured through someone else’s fault, however, and may lose out, redress is proper. Otherwise, we would not be civilised.”

He adds that compensation is “no lottery win”. Melanie McDonald, a barrister and author of the Which? Essential Guide to Making a Claim, says that the sums awarded often disappoint clients, most of whom “slightly overegg the pudding”. For instance, “general damages” for pain and suffering are often less than £10,000. “Special damages”, meanwhile, cover quantifiable sums, such as loss of earnings and care costs.

Knowing whether and how to make a claim is not straightforward. “Personal injury” covers a range of scenarios, from car-crash whiplash to stumbles in the street and work stress. Success hinges on whether the other party was negligent, failing to meet its duty of care. Mr Bare says that this is impossible for the layman to assess.

Because the law is complex, potential claimants are advised to speak to Citizens Advice or a local Law Centre. It is important to act fast because legal action must be started within three years of awareness of injury. Most solicitors will also provide free advice on whether a claim might stand, and its value. The Law Society can help callers to locate a specialist solicitor on 0870 6062555, as can APIL on 0870 6091958.

You should bring detailed notes to the first meeting with a lawyer or adviser, along with copies of relevant photographs and documents (see box, facing page).

If you do decide to take action, it must be funded. Legal aid is not available normally in personal injury cases, so solicitors pursue most on a “no-win, no-fee” basis, known as a conditional fee agreement (CFA). However, they must first establish that clients have no alternative, aside from self-funding. Trade unions, for instance, pay members’ legal costs, even where an injury is unrelated to work, and some home and motor insurance is bundled with legal expenses cover.

Whatever route you take, you should first sit down with your solicitor to talk through all possible costs and who will meet them.

A key consideration is that no-win, no-fee arrangements are not risk-free. “No fee” means that claimants will not be liable for their solicitor’s fees if the case fails. They will, however, have to pay the opponent’s costs, typically £5,000plus. To fund this, claimants are advised to buy after-the-event (ATE) legal expenses insurance. The cost of this type of cover will be several hundred pounds, at least.

Ms McDonald explains that most solicitors will pay for this in expectation of success, but she adds that it is one of several “disbursements” – additional expenses, including a medical report and court costs – that clients may have to pay upfront. Provided that they are reasonable, these costs, including the insurance premium, are refunded by your opponent if you win and most ATE policies if you lose.

Advice Now, the not-for-profit advice website, publishes Claiming Compensation, a free guide that spells out the potential pitfalls. The download is available at advicenow.org.uk/compensation and explains, for instance, that claimants who take out a loan to fund disbursements and ATE cover will lose the interest payments on the loan whether they win or lose the case – an often unforeseen cost.

The guide also explains the role of claims management companies, such as National Accident Helpline, most of which work with a pool of solicitors to offer no-win, no-fee deals. Mr Bare argues that there is no need for such a middleman, as most solicitors offer a “holistic” service. Ms McDonald adds that it is best to search for the right solicitor without restriction.

Whoever you take on, be aware that most cases never reach court. The other side may accept liability and offer compensation – and costs – after your solicitor sends a “letter of claim” or after proceedings are issued. For example, Kerry Lees, of Blackpool, accepted an offer of £20,000 last November in the run-up to trial. Her back had been injured in a car crash in 2004, ending a promising ice-skating career. Steve Evans, of We Solicitors, who handled the case, says that standard claims are settled much faster, often within months.

Predictably, insurers have little time for the current system. The Association of British Insurers is pushing for an overhaul so that claims for £25,000 or less would be moved from the legal system to an arbitration service. It says that this could deliver comparable levels of redress at a fraction of the cost to insurers and their clients. In addition, most cases would be resolved within six months.

CASE STUDY A WEIGHT OFF HIS MIND

TIM HOLLANDS, of Bury St Edmunds, Suffolk, faced financial as well as physical pain after his back “went” when he was told to lift a 114kg load at work in 2006. The 49-year-old factory worker, left, was off work for seven weeks with no sick pay and was forced to borrow to keep up his mortgage repayments.

Mr Hollands took his problem to Fentons Solicitors, which advised him to make a claim against his employer because lifting was not in his job description. “We went ahead on a conditional fee basis,” he says. “I checked in advance that I would not have to pay a penny.”

His employer denied liability initially but then offered £4,500 eight days before the case was due for trial. Mr Hollands accepted the offer and says: “I was more than happy. The money covered my losses, with a bit extra for the pain. However, had I been offered sick pay from the start, I would never have taken legal action.”

What you need

Most solicitors give an initial free consultation. To make the most of this, Melanie McDonald, in Which? Essential Guide to Making a Claim, advises providing:

A written chronology or sequence of events, outlining what happened and when. This should be precise and made as soon as possible after the accident.

A list of the names, addresses and telephone numbers of anyone who might act as a witness for you. If you are too dazed to stop passers-by in the wake of a mishap, ask someone to help you.

Any documents or photographs that relate to your claim. Documents might include letters from the other party, while photographs could include camera phone images of damaged pavement or steps.

Details of any household or motor insurance policies that may include legal expenses cover.

A list of key questions. Crucially, whether your claim stands a chance and whether you could be asked to pay at any point.

Details of your opponent’s solicitor, if he or she has one.