A claimant purchases an ATE Insurance policy, but does not normally pay for it at that stage. Most ATE policies are instead payable at the end of a case - when it has been successfully concluded. Better still, ClaimSafe policies are payable only once the premium has actually been paid by the defendant, so when a claimant comes to pay an ATE policy premium, it has already been paid to him by the defendant.
Some policies require a single premium; others require increasing staged premiums as a case progresses. The stages at which a premium can increase are not legally prescribed - each ATE insurer is free to create their own premium structure, although the issue of proceedings and the approach of trial are two common points at which a staged premium may increase. In some cases the final staged premium is left open ended, and assessed by the insurer based on the risks which are apparent as trial approaches. ClaimSafe policies have the advantage of requiring only a single fixed premium which is never varied.
The full policy premium can be recovered from a defendant provided it is reasonably priced. ClaimSafe premiums are kept deliberately low so that they will always be recovered without difficulty.
All ATE insurance policy premiums are subject to Insurance Premium Tax ("IPT”). This was originally imposed at 5% but increased to 6% on all premiums paid after 4 January 2011.
It is normally part of the policy that the premium does not need to be paid if the case is lost or abandoned, and this is true of ClaimSafe policies.
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