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New Queensland law bans 'insidious practice' of claim inducement

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Queensland has banned the “farming” of personal injury claims, with new laws prohibiting anyone soliciting another person to make a claim, paying for details of potential claimants, or receiving payment for a claim referral.

The state already banned the practice for motor vehicle compulsory third party claims in 2019 as it aims to prevent potential claimants from being “incentivised, harassed and induced” into seeking compensation by someone who will receive payment for the referral.

The new laws "break the nexus between claim farmers and legal practices” by requiring law firms to certify the claims they are representing have not been farmed, Attorney-General Shannon Fentiman said.

The Personal Injuries Proceedings and Other Legislation Amendment Bill 2022 will stamp out this “insidious practice” of claim farmers cold calling or otherwise approaching individuals to coerce them into claims to attract a fee, she said.

The new laws “remove the financial incentive for claim farmers to harass Queenslanders and ensure the justice system is not burdened by the cost of unnecessary personal injury and workers’ compensation claims”.