The Law Society will launch a telephone hotline service next month to give free legal advice on injury compensation cases.
It warned yesterday that claiming compensation through recovery agents rather than lawyers could cost more and abet an illegal activity.
People injured in accidents are often approached by claims or recovery agents who offer to help them obtain compensation in return for a share of the payout. The Law Society said many agents promised 'no win, no fee', 'risk-free guarantee' and 'huge sums of compensation' to tout for business from claimants.
It said anyone encouraging a lawsuit and assisting a claimant on the condition that the compensation payout be shared could be guilty of maintenance and champerty, and be jailed for seven years.
Newly elected society chairman Wong Kwai-huen said there was no guarantee such middlemen would represent the best interests of clients.
'Suppose you are entitled to HK$1 million compensation. These agents may settle on HK$300,000 on your behalf, and pocket their profit, without caring about your benefits,' he said.
Ludwig Ng Siu-wing, chairman of a Law Society publicity subcommittee, said the society would take steps to educate the public on the proper way to engage lawyers for injury compensation suits.
