New underwriting arrangements

Claims Direct PLC
19 June 2002


                               CLAIMS DIRECT PLC

                           New business model update

        New underwriting arrangements - launch of new insurance policies

Introduction

Further to its previous announcements regarding the launch of its new business
model, Claims Direct plc ('Claims Direct' or 'the Company'), the leading
personal injury claims management specialist, is pleased to announce that it has
concluded an underwriting agreement with Isle of Man Assurance Limited ('IOMA').
Under the agreement, Claims Direct will with immediate effect market '
LitigationPlan', IOMA's after the event ('ATE') legal expenses insurance policy,
to its clients.


LitigationPlan policy

The agreement allows Claims Direct to offer its clients two levels of policy,
based on the type of accident involved in their personal injury claim.  In the
case of a Road Traffic Accident ('RTA') personal injury claim, the insurance
premium will be £500 plus Insurance Premium Tax of 5% ('IPT').  For non-RTA
related personal injury claims (such as accidents at work and 'slip and trip'
accidents), the premium will be £950 plus IPT.  Claims Direct believes that its
new two-tier insurance premium more accurately reflects the ever-evolving ATE
market and differs from its original business model which was based on a both
sides costs policy.

The LitigationPlan policy indemnifies clients in respect of their costs and
disbursements incurred should their case be unsuccessful, up to a limit of
£50,000.  The policy is run in conjunction with a CFA (Conditional Fee
Agreement).

Each ATE policy will be acquired on Claims Direct clients' behalf by their
solicitor as a disbursement of running their case, thereby removing the need for
clients to take out a loan to purchase the policy.  The company believes this to
be a unique selling point and will give Claims Direct a distinct advantage over
its competitors.

This new policy provides greater transparency and represents best industry
practice.  It will also result in greater clarity in relation to the issue of
recoverability of such premiums.

Ronnie Henderson, Chief Executive of Claims Direct, commented:

'This agreement is another important step forward in implementing our new
business model.  It allows us to reduce the cost to our clients of pursuing
their personal injury claims in order that they will retain a significant
proportion of their damages whether or not the issue of premium recoverability
is resolved.

'The launch of the new business model, as represented by changes such as these
new underwriting arrangements, is building the platform from which we can
re-establish Claims Direct's business and restore its profitability and
reputation.'



                                    - Ends -





For further information please contact:

Claims Direct plc                                         01952 284800
Ronnie Henderson, Chief Executive                 www.claimsdirect.com
David Gravell, Chief Operating Officer

Weber Shandwick Square Mile                              0207 950 2800
Reg Hoare/Christian Taylor-Wilkinson/Claudine Cartwright




                      This information is provided by RNS
            The company news service from the London Stock Exchange