At Lexelle, we prioritise offering the best value in family legal expenses insurance. We’ve been rigorously evaluating our LEI products internally for years to ensure they meet our customers’ needs. Through these reviews, we’ve recognised that traditional measures used to gauge insurance value might not fully apply to Legal Expenses insurance, a concern also acknowledged by the FCA.

For example, in 2019, the FCA acknowledged that the declinature rate for Legal Expenses Insurance would be higher due to industry standard requirements such as Reasonable Prospects of Success. Since then, the FCA have updated their reporting requirements, removing claims costs reporting. This change reflects that for claims with the best outcome for customers typically incur minimal costs to the policy, as they’re often recoverable from the losing party.

Low claims payments shouldn’t be misconstrued as poor value. Legal Expenses insurance offers crucial support during vulnerable times. It helps assess case merits, guides evidence gathering, and provides legal representation, protects against hefty representation costs and disbursements.

This ensures customers don’t face financial burdens that may prevent them from pursuing their legal rights and obtaining the justice they are entitled to.

Employment Disputes, are different to most civil claims in that, even if a claim is successful, the claimant does not usually recover their legal costs. So, without insurance legal representatives can often require substantial legal fees paid upfront and topped up as the case is progressed. The costs of pursuing a claim via the Employment Tribunal can often be in excess of £10,000, but with our insurance cover, these costs are covered. This again shows the real value of the Legal Expenses insurance as it provides the support needed to fight for the rights and compensation the employee deserves, and enables them to retain it all.

Additionally, our policies include a 24/7 legal helpline provided by a UK law firm, offering advice on personal legal queries. This service complements legal representation and aids in resolving issues before formal legal action.

Our claims administration is also streamlined, with trained handlers who can tailor the claims process to suit the needs of the customer, guiding them through the process and offering alternative dispute resolution advice. Even where matters fall outside of the insurance cover, we dedicate time to explain decisions fairly.

Family LEI in Practice – Case Studies

Defective Workmanship

A Lexelle customer had their windows replaced in their home, but following their installation issues were immediately identified with the quality of the workmanship. The company were unable to resolve the issues, and then they would not respond. The client contacted Lexelle with a view to pursuing a claim under the terms of their Family LEI policy against the original contractor for the costs to put the defective workmanship right.

Lexelle referred the insured to panel solicitors who began to act for them to pursue the cost to rectify the issues. Whilst the window company refused to respond to the insured, once solicitors were involved the company began to respond and ultimately settled the claim without the need for legal proceedings. Because of the value of the loss the solicitor’s fees were not recoverable from the window company so the Lexelle policy covered these ensuring the insured retained all of their recovered losses.

Personal Injury

The client slipped on a saturated carpet mat in a supermarket, which caused her to fall, and sustain several injuries. She submitted a claim for assistance to under her Lexelle Family LEI policy. After a review of the claim, we referred the case to our panel solicitors and asked them to pursue a claim on the client’s behalf.

Despite liability being initially denied by the supermarket, the solicitors pursued the case and established the store was liable and so were able to recover the appropriate amount of compensation and redress for the insured who retained 100% of the compensation.

Employment Dispute

A employee advised their employer they were pregnant and within a month they were dismissed. There had no been any previous issues raised in respect to their work and was devastated to be dismissed and believed it was all due to her being pregnant.

Solicitors were instructed under the policy and they supported and acted for the insured,  pursing the matter via the Employment Tribunal process.

The upset to the customer caused them to suffer a mental illness and Lexelle took this in to account and paid for additional assistance to support the insured through the tribunal hearings.

The case was successful and the insured recovered substantial compensation which they retained in full with the policy paying the large legal fees as they were not recoverable from the other side.