Solicitors’ Undertakings To VHI
Practitioners will be aware of previous practice notes issued by the Society recommending that solicitors do not give undertakings to third parties while the claim remains within the Injuries Board process. Specifically, members were advised of difficulties with the form of undertaking that VHI issues to practitioners for completion, and the Society recommended that solicitors should not sign the undertaking. Practitioners should note that this recommendation remains in force. In recent times, there have been instances where solicitors have given the undertaking and only later realised that the requirement that solicitors repay to VHI – out of the proceeds that come into their hands and subject to any court order to the contrary – all monies paid by VHI on behalf of the subscriber, has resulted in the subscriber/client receiving much less compensation out of the proceeds of the claim than had been anticipated.
The Society is aware that some clients are pressuring solicitors to give the undertaking because VHI is refusing to cover the subscriber for necessary treatment unless the undertaking is signed or because the client fears being sued by their treating hospital on foot of VHI refusing to pay the hospital bill until the undertaking is signed. It is recognised that such situations place solicitors in a very difficult position and, in instances where solicitors decide that there is no option but to sign the VHI form of undertaking, it is strongly recommended that clients are made fully aware of its implications and that solicitors ensure that clients provide a signed acknowledgement of their understanding of its implications.