Insurance Company Settlement Cheques/PIAB

Litigation 02/02/2007

The Litigation Committee is aware that, in a growing number of instances, insurance companies are forwarding settlement cheques directly to clients rather than to the solicitors who are on record for them. Practitioners are reminded of the importance of obtaining an authority from the client to receive the settlement monies.

The committee would point out that insurance companies have in the past disregarded mere letters requesting that the settlement cheque be sent to the solicitor. It is suggested that, in all cases, a signed authority with a clear direction from the client to the payer to forward the cheque to the solicitor, should be furnished in good time to the insurance company/respondent (not to PIAB, who are not involved in the payment of settlement monies).