Legislation aimed at curbing aggressive claim farming tactics has reached the NSW Parliament, marking another move to protect people recovering from motor crashes from being pressured into unwanted legal action.
The Motor Accident Injuries Amendment (Claim Farming Practices Prohibition) Bill 2025 expands on earlier measures passed in April. At its core, the Bill makes it an offence to pressure people into lodging civil compensation claims through the state’s Compulsory Third Party scheme. Two new offences will be written into the Motor Accident Injuries Act 2017, with penalties of 55 thousand dollars for those caught engaging in unsolicited contact designed to push people into making a claim.
Claim farming has been a growing concern across the country, drawing criticism from regulators and communities who say the practice targets people at vulnerable moments. Those contacted often report receiving repeated phone calls from unknown operators who use forceful language, leaving many feeling cornered or confused about their rights.
State ministers say the changes are designed to protect both individuals and the stability of the CTP scheme itself. Supporters of the Bill argue that the reforms will help prevent predatory behaviour and keep pressure off premiums by ensuring the scheme is used responsibly. At the same time, legal professionals note that any expansion of offence provisions should be carefully monitored to ensure genuine claimants do not feel discouraged from seeking help.
Minister for Customer Service and Digital Government, Jihad Dib, said claim farming had no place in the state. He described the tactics as appalling, adding that the amendments make it clear that anyone attempting to profit from someone’s injury or loss will face serious consequences.
Attorney General Michael Daley said the approach reflects a broader effort by the government to protect those who are most at risk of coercion. He pointed to earlier actions taken against operators who targeted survivors of child abuse, saying the new reforms extend the same protections to people dealing with motor crash injuries and trauma.
Mandy Young, Chief Executive of the State Insurance Regulatory Authority, described claim farming as harmful both to individuals and to trust in the CTP system. She said the new measures would give the regulator stronger tools to shut down misleading behaviour and keep support pathways fair and transparent for people recovering from injuries.
Public feedback around claim farming in recent years has shown widespread concern, with many residents reporting unsolicited calls after incidents that were never publicly disclosed. Advocacy groups say the practice can be particularly distressing for families dealing with grief, and that stronger policing of cold-calling tactics is long overdue. Others caution that enforcement will need to be sustained to have a lasting effect, noting that similar bans in other jurisdictions led some operators to rebrand or shift tactics.
The government maintains that the changes strike the right balance by targeting the unsolicited pressure itself rather than restricting access to legal advice. People who genuinely need support after a crash will still be free to seek help through established legal and medical channels without fear of being harassed.
With the Bill now before Parliament, stakeholders expect further discussion about how the rules will be implemented and monitored. For many in the community, the hope is that firmer penalties and clearer boundaries will help stop unwelcome contact at moments when people are already under strain.
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