Anyone might one day have to deal with the justice system, whether to defend themselves or to pursue a legal action. Legal costs, attorney fees, and expert fees can be significant. Although the law provides for a procedure indemnity in favor of the successful party, this often proves insufficient to cover all incurred costs. Let’s take a look at legal protection insurance.
Understanding Legal Protection Insurance
The purpose of Legal Protection Insurance is to allow you to assert your rights as a plaintiff or defendant, whether in a judicial, administrative, or other procedure, or outside any procedure.
The Legal Protection Insurer will undertake, in exchange for the payment of an insurance premium, to cover all your defense costs.
This will be the case, for example, if you have received a summons to appear before the police court or if you wish to obtain compensation for damages suffered in a road accident.
The Objectivity Clause
Generally, the legal protection insurer will first attempt to settle your case amicably.
If you disagree with your insurer’s point of view, you have the right to invoke the objectivity clause and consult the lawyer of your choice.
Three scenarios are then possible:
- • If the lawyer confirms the insurer’s position, half of the consultation fees and costs will be reimbursed to you.
- • If the consulted lawyer confirms your position, the insurer will be obliged, regardless of the procedure’s outcome, to provide coverage, including the consultation fees and costs.
- • If you proceed at your own expense, against the advice of your lawyer, and achieve a better result than you would have by accepting the insurer’s and lawyer’s viewpoint, the fees and costs, as well as the consultation fees, will be fully covered by your insurer.
A conflict of interest may arise when the same insurer covers the same insured party for both civil liability and legal protection.
This is why we recommend taking out your legal protection insurance with a different company.
The free choice of lawyer will also help mitigate this conflict of interest.
