The NSW Government has introduced legislation to Parliament to protect people injured in motor crashes from being targeted by unethical 'claim farmers'.
Claim farmers target people who have been involved in or lost a family member in a motor crash by using highly coercive tactics to pressure them into lodging a claim.
The Motor Accident Injuries Amendment (Claim Farming Practices Prohibition) Bill 2025 builds upon the Prohibition on Claim Farming Practices Act 2025 passed in April, making it unlawful to pressure vulnerable people to lodge civil compensation claims in NSW.
The Bill inserts two new offence provisions into the Motor Accident Injuries Act 2017 responding specifically to claim farming practices in the NSW Compulsory Third Party (CTP) Scheme. These offences will attract a penalty of $55,000.The amendments aim to protect vulnerable people from being taken advantage of by prohibiting unsolicited contact.
These amendments to the NSW CTP Scheme will offer important protections to the people of NSW and help protect the ongoing viability of the scheme.
Quotes attributable to Minister for Customer Serviceand Digital Government, Jihad Dib:
"Claim farming is an appalling practice that targets people when they are at their most vulnerable and it has no place in NSW.
"These amendments will strengthen our laws and stop high-pressure tactics used by claim farming networks to prey on people through the CTP Scheme.
"We are making it clear that anyone who seeks to profit from exploiting people with an injury or their family members will face serious consequences."
Quotes attributable to Attorney-General, Michael Daley:
"Nobody should be harassed or pressured into making a civil compensation claim.
"The NSW Government has already acted to crack down on claim farmers targeting vulnerable people such as child abuse victim survivors.
"We are now extending this ban to those who would seek to exploit the injury and trauma of motor vehicle crash survivors."
Quotes attributable to SIRA Chief Executive Mandy Young:
"Claim farming undermines trust in our robust CTP Scheme and causes real harm to people who are already dealing with the stress and trauma of a motor crash.
"This new Bill gives us the tools to stop unethical operators and protect the community from misleading practices.
"Our priority is to ensure that people with an injury and their loved ones receive fair, transparent support without fear of exploitation."
