Palaszczuk Government to crack down on claim farming

The Palaszczuk Government will introduce legislation to crack down on ‘claim farming’ on Queensland’s compulsory third party (CTP) insurance scheme.

Deputy Premier and Treasurer Jackie Trad told a Parliamentary Estimates hearing today that claim farming is on the rise and that this predatory behaviour must stop.

“Claim farming is when members of the public receive cold calls or social media prompts seeking personal details regarding possible involvement in car accidents,” Ms Trad said.

“The claim farmers encourage people to make a CTP claim to gain access to personal, sensitive details which they then sell on.

“Claim farmers often use high pressure tactics and can be contacting vulnerable people, including children and the elderly.

“People are rightly concerned that their personal, private information is being provided to claim farmers or accessed by claim farmers.

“It is clear that some claim farmers appear to have no moral boundaries and that is why their business practices must be stopped.

Ms Trad told the Economics and Governance Committee that she had asked Queensland’s CTP scheme Regulator, the Motor Accident Insurance Commission (MAIC) to urgently advise on options to stop this ‘insidious practice’.

“This will include progressing amendments to the Motor Accident Insurance Act,” she said.

“We will be consulting widely with the key stakeholders because it is important to get the changes right.

“We need to ensure that genuinely injured claimants are not impacted by the actions of a few bad apples and that Queensland’s CTP scheme remains affordable and supportive of injured Queenslanders.

“The Government is committed to preserving the strength and stability of the Queensland CTP scheme. That’s why we are acting to protect people’s privacy and stop this harassment.

“We expect to introduce legislation in 2019. In the meantime, MAIC will begin to roll out a range of activities that focus on raising awareness for consumers and businesses alike around this practice.”

People who have been contacted by a claim farmer can make a report here: https://maic.qld.gov.au/contact-us/claim-farming/.

Media Contact: Clare Manton 0432 446 268