Lawyers welcome Queensland Government move to put the brakes on claims farming

24th Jul 2018

The Australian Lawyers Alliance (ALA) has welcomed today’s announcement by the Queensland Government that it plans to crack down on practices known as ‘claims farming’.

ALA Queensland Director, Rod Hodgson, said that whilst claims farming in which members of the public receive cold calls or social media prompts from telemarketers attempting to recruit them for personal injury claims is not yet common, it is an issue of growing concern to the legal profession.

“Claims farming is a serious breach of an individual’s privacy. It needs to be eradicated before it becomes a more widespread issue,” Mr Hodgson said.

“CTP scheme data suggests that instances of claims farming remain minimal in Queensland.  However, there is some anecdotal evidence of an uptick in claims farming.  This is an issue which has negatively affected schemes, mostly interstate.  

“We commend the government’s desire to see the problem addressed without impacting Queenslanders’ access to justice,” he said.

Mr Hodgson said Queensland’s Compulsory Third Party (CTP) insurance scheme is the best in Australia.

“It is well-run, inexpensive and provides a good balance of benefits to Queenslanders injured on the road. It’s important that the scheme not be to be undermined by the actions of a small minority,” Mr Hodgson said.  

Mr Hodgson said that the ALA will work closely with the Queensland Government and other stakeholder groups to help formulate and implement robust changes, and put a stop to claims farming in Queensland.