Under QOCS, what is the effect on insurers who win?

• A. Insurers can never recover their costs if they win
• B. Insurers can recover all costs
• C. The claimant can recover all costs
• D. The costs order is automatically stayed

Answer: (A)

Qualified One-Way Cost Shifting protects claimants in personal injury cases from being pursued for the opponent’s costs if the claim fails. The default position under QOCS is that, even if the insurer wins, it cannot recover its costs from the claimant. In other words, costs do not follow the event in the usual way for the insurer, apart from narrow exceptions (like fundamental dishonesty). So the statement that insurers cannot recover their costs when they win reflects this protection. The other options would imply that the insurer can recover costs, or that the claimant would recover all costs, or that costs orders are automatically stayed, none of which align with how QOCS operates.