The number of no win no fee claims made during the recession has soared.

The overall amount of compensation claims made has increased significantly as the downturn of the UK economy has left the councils, employers and motorists struggling to cover the costs of carrying out health and safety regulations and simple repairs.

Road accidents

With more motorists failing to carry out MOT and safety checks in fear of having to fork out extra repair costs during the crisis, along with the increasing number of pothole damage to Britain's roads, previous claims that the number of road accidents will soar has been proved wrong.

Figures from the Department for Transport, (DfT) revealed that the number of road accidents in the UK has reduced for the year ending March 2009.

According to the figures, the number of road casualties fell by eight per cent with the number of fatalities or those seriously injured falling by nine per cent.

AA Insurance has welcomed the DfT's figures.

Fall figures good news

Director of AA Insurance, Simon Douglas said: "The falling accident rate is good news, especially as this continues a long-term downward trend."

The director stated that he was not "really surprised to see it" as the recession has discouraged car use.

He said: "This year has seen fuel prices rise along with other demands on family budgets as well as rising levels of redundancy, all of which discourages car use: indeed, the DfT notes that traffic volumes fell by two per cent over the year."

However, despite the fall in road accidents, he pointed out that there has been a surge in the number of personal injury claims made, stating that motorists involved in road accidents are "much more inclined to make personal injury claims."

The statement came after research revealed that there was an increase in the number of no win no fee claims made as a result of personal injuries. This compares to the decline in the number of road accidents in the UK.

Figures published by the Association of British Insurers (ABI) revealed that the number of no win no fee claims for injuries reached 9.6 billion last year - 8.8 billion more than in 2006.

Douglas stated that "those involved in accidents are much more inclined to make personal injury claims," even for injuries such as whiplash.

However, work accidents could account for a majority of no win no fee claims made.

Work accidents

According to a North East law firm, with over 60 per cent of employees believing that their employers are less focused on health and safety at work due to the recession giving them bigger worries, "the recession could well be having an impact on the number of workplace accidents."

A spokesperson from the solicitor firm said: "It is understandable that many businesses are currently taking actions to reduce costs, but it is vital that workers' safety is not compromised."

She added: "Industrial accidents are a common occurrence, and even in an office environment, accidents can and do happen. If you have any queries about your rights if you have suffered an injury, you should seek legal advice."