Queensland bans bodily injury claim farming – Daily – Insurance News

The Queensland Parliament today passed new laws banning the so-called ‘farming’ of injury claims after an increase in the targeting of cases such as institutional child abuse and workers’ compensation.

The new laws prohibit anyone from soliciting or inducing another person to make a claim, as well as payments to farmers claiming details of potential claimants, or receiving payment for a claim referral.

The change is intended to prevent potential claimants from being “encouraged, harassed and enticed” into seeking compensation by a claimant farmer who will receive payment for the referral.

Attorney General Shannon Fentiman said the Personal Injury Proceedings Bill 2022 and other legislative changes would eliminate this ‘insidious practice’ of cold calling farmers or approaching individuals to coerce them into making claims. expenses.

In 2019, Queensland banned claim farming for mandatory third-party claims for motor vehicles after the Motor Accident Insurance Commission found that more than 1.5 million Queenslanders had been targeted by farmers requesting calls for information, with some people receiving 10 or more calls a week.

A maximum penalty of $40,000 for an individual and $200,000 for a corporation was introduced, and since then there has been a “significant decrease in the number of people reporting being harassed by farmers”, says Ms. Fentiman, who is also the minister. for justice, women and the prevention of domestic and family violence.

The new laws “sever the link between claim farmers and legal practices” by requiring law firms to certify that the claims they represent have not been exploited, she said, and “remove the financial incentive for claims farmers to harass Queenslanders and ensure the legal system is not burdened with the cost of unnecessary personal injury and workers’ compensation claims”.

Industrial Relations Minister Grace Grace said the workers’ compensation regulator had also expanded compliance and enforcement powers to prosecute farming-related offences.

InsuranceNEWS.com.au has previously reported a rise in historic abuse claims, spurred by the advertising of no-gain, no-pay solicitors on the radio and in prisons, leaving home and residential care providers to argue that governments states are stepping in and providing a safety net after private insurers leave the niche market.

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