§ 30. Mr. Owen Paterson (North Shropshire)If he will list those insurance companies selling insurance products to underpin conditional fee agreements. [56133]
§ The Minister of State, Lord Chancellor's Department (Mr. Geoffrey Hoon)Insurance products to underpin conditional fee agreements have been available since July 1995 when conditional fee agreements first became lawful. The number and range of insurance products are increasing with new products becoming available all the time. I am aware of at least eight providers of insurance to underpin conditional fees. I am aware of at least two other products that are likely to be brought on to the market over the coming months.
676 I doubt that a comprehensive list exists or, indeed, could be put together, given the vibrant and expanding nature of the market.
§ Mr. PatersonThe insurance industry will currently underwrite only personal injury cases for conditional fee agreements. What does the Minister intend to do about the public who take any other case to court?
§ Mr. HoonA wide variety of insurance products are available. There are insurance products available to cover any sort of risk, but the premiums to cover significant risk are available at a significant cost. Obviously, as the market develops, we will see a lowering of the cost of those premiums.
§ Mr. Edward Garnier (Harborough)I congratulate the Minister on his promotion in the last Government reshuffle and I offer him my commiserations on his inability to extract himself from the grip of the Lord Chancellor.
According to the Consumers Association report, "Legal Expenses Insurance: Realising its Potential", which was published this year, only 17 per cent. of adults in Great Britain have legal expenses cover. That compares with the 1990 figure of 27 per cent. It also appears that mostly the more affluent and middle-aged households take out this insurance. Given that the Government are taking away legal aid from the least affluent and leaving them to rely on their own limited resources, can the Minister say whether his proposals will increase or decrease access to justice for the poor?
§ Mr. HoonWe have made it clear that legal aid will not be withdrawn from anyone in our society unless and until there are effective alternatives and effective access to justice. The extension and development of conditional fees will allow that to take place in due course, but we have made it clear that we want to see an extension of legal expenses insurance. We believe that that is appropriate for the great majority of people. Equally, we have made it clear that no one will lose out unless and until there is effective access to justice for them.