A regulated person is in breach of this section if—
the regulated person offers another person a benefit or is treated as doing so under subsection (4),
the offer of the benefit is an inducement to make a claim in civil proceedings for—
damages for personal injury or death, or
damages arising out of circumstances involving personal injury or death, and
the benefit is not related to the provision of legal services in connection with the claim.
An offer of a benefit to another person is an inducement to make a claim if the offer of the benefit—
is intended to encourage the person to make a claim or to seek advice from a regulated person with a view to making a claim, or
is likely to have the effect of encouraging the person to do so.
An offer of a benefit may be an inducement to make a claim regardless of—
when or by what means the offer is made,
whether the receipt of the benefit pursuant to the offer is subject to conditions,
when the benefit may be received pursuant to the offer, or
whether the benefit may be received by the person to whom the offer is made or by a third party.
If a person other than a regulated person offers a benefit in accordance with arrangements made by or on behalf of a regulated person—
the regulated person is to be treated as offering the benefit, and
the offer of the benefit is to be treated as satisfying subsection (2)(a) if the arrangements were intended to encourage people to make claims or seek advice from a regulated person with a view to making a claim.
The Lord Chancellor may by regulations make provision as to the circumstances in which a benefit is related to the provision of legal services in connection with a claim, including provision about benefits relating to—
fees to be charged in respect of the legal services,
expenses which are or would be necessarily incurred in connection with the claim, or
insurance to cover legal costs and expenses in connection with the claim.