The fact that the LCC's are forcing people to go to the small claims court or use an ambulance chaser solicitor rather than acknowledge a legitimate claim is ridiculous. They are paying out significantly more in defending the indefensible than if they settled in the first instance.
I'm not convinced that that is the case. As I and others have said before, it is standard policy to reject the first complaint with some lame "operational" reason which was "beyond their control". You might actually be surprised what percentage of claimants give up at this stage of proceedings. It's not until you make it quite clear to them that you WILL pursue matters through the courts that they pay up, still denying responsibility but as a "gesture of goodwill"! This applies to ALL carriers, not just the LCCs.