Reforms to better protect victims of personal injury from predatory money-grabbing behaviour have passed State Parliament.
The laws will ban the practice known as 'claim farming', where an individual or business makes unsolicited contact with a victim who may have grounds for a civil injury claim, in order to obtain their personal information and receive a kickback for referring them to a law firm to pursue compensation.
The Bill will prohibit:
- making unsolicited personal contact with another person to solicit or induce them to make a personal injury claim in the expectation that in exchange, they will receive a benefit.
- giving or receiving a benefit in exchange for the personal details of a person who has or may have a personal injury claim.
The practice of claim farming drew nationwide attention following the Royal Commission into Institutional Responses to Child Sexual Abuse, with a number of victim-survivors reporting having been cold-called by businesses and law firms soliciting for clients in compensation claims.
Common methods of claim farmers often involve inappropriate or exploitative methods of contact, applying high pressure and making deceptive promises of quick and easy compensation. Such contact to an injured person disrespects their autonomy and well-being, and in many cases they may not be ready to speak about the events leading to their injury.
Under the new laws, anyone who engages in the practice could be fined up to $50,000, with lawyers who participate in these behaviours also facing disciplinary action through the Legal Practitioners Act.
The new offence would still allow contact of a victim at their request, for a class action, or altruistic approaches where the person making the approach does not expect or intend to receive, and does not receive, a benefit as a result of the approach. Outlawing claim farming will also not prevent victims from bringing a claim for compensation.
As put by Kyam Maher
Targeting vulnerable people who have been injured, including victims of abuse - at a point in their life where they desperately need help and support simply to try and make a quick buck - is gutter behaviour.
Whilst all persons with an injury are vulnerable to some degree, claim farmers often target people with vulnerabilities additional to the injury.
It is immoral behaviour that soon, due to the Government's proactive work in this area, will be illegal.
People who have suffered an injury through no fault of their own deserve better, and these laws will help prevent predatory operators who seek to profit from their misfortune.
