Suncorp and RACQ Insurance have called on the Queensland Government to pursue wider compulsory third party (CTP) reforms, after the state’s Treasurer announced legislative changes are planned to stop “claim farming”.

Treasurer Jackie Trad has asked CTP scheme regulator the Motor Accident Insurance Commission (MAIC) to urgently advise on options to end the “insidious practice”.

“We will be consulting widely with the key stakeholders because it is important to get the changes right,” she said. “We expect to introduce legislation [next year].

“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.”

Claim farming involves cold calls or social media posts to people seeking personal details about their possible involvement in car accidents and indicating compensation may be available.

The claim farmer then refers the details to a third party, such as a lawyer, for a fee, potentially involving the person in fraudulent claims with no certainty they will receive money.

Claim farmers often use high-pressure tactics and can contact vulnerable people, including children and the elderly.

Suncorp Insurance CEO Gary Dransfield says it is time to introduce defined benefits for minor injuries such as whiplash, bringing Queensland into line with other states.

“This will allow genuine claims to be processed faster and leave the CTP scheme less vulnerable to rorting,” he said.

RACQ Insurance CEO John Myler says there has been a rise in “dodgy” claims, despite a steady decline in the number of car crashes.

“While we support an investigation into claim farming, this is a Band-Aid solution when the entire CTP scheme needs reform in Queensland,” he said.

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