Motor Accident Insurance and Other Legislation Amendment Bill 2019

Overview

This bill tackles 'claim farming' - a growing problem where anonymous callers from local or overseas call centres contact Queenslanders after car accidents, often impersonating government agencies, to pressure them into making insurance claims. These callers then sell the victims' personal information to lawyers or claims services for a fee. The bill creates new criminal offences for this conduct and strengthens the Motor Accident Insurance Commission's powers to investigate and prosecute offenders.

Who it affects

Queensland drivers and accident victims are protected from harassment and privacy breaches. Lawyers must now certify they did not obtain clients through claim farming, and face substantial penalties if they did. CTP insurance premiums may stabilise as fraudulent claims are reduced.

Key changes

• New offence prohibiting payment or receipt of fees for referring accident claimants to legal or claims services (maximum 300 penalty units)
• New offence banning unsolicited contact to pressure people into making motor accident claims (maximum 300 penalty units)
• Law practices must certify at multiple stages that they did not engage in claim farming and comply with the '50/50 rule' on legal fees
• Commission gains stronger powers to investigate law practices suspected of claim farming, including ability to override legal professional privilege for sourcing of claims
• Claimants must provide Medicare numbers and identity documents; doctors must confirm they physically examined patients