NSW Government Targets Predatory Practice of Claim Farming
NSW Government Targets Predatory Practice of Claim Farming
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The New South Wales Government is taking decisive action against 'claim farming', a predatory practice that exploits vulnerable individuals by pressuring them to file compensation claims.
This practice often involves unethical tactics targeting susceptible groups, including child abuse survivors.
To combat this, the government is set to introduce the Claim Farming Practices Prohibition Bill 2025.
This newly proposed legislation aims to achieve three core objectives:
Ban individuals from contacting others to induce them into making compensation claims.
Prohibit the buying or selling of claim referrals.
Forbid lawyers convicted under these offences from charging legal fees related to the claim and mandate refunds of any received costs.
Claim farmers are known to acquire personal information without consent to make unsolicited contacts, often using coercive tactics like harassment and intimidation. Such practices inflict considerable distress on victim-survivors, pushing them to file claims under duress.
Additionally, these claim farmers typically demand referral fees from law firms or other claim farming entities, frequently making misleading promises regarding legal entitlements that may not serve the claimants' best interests.
The introduction of this bill specifically targets claim farming activities related to personal injury claims under the Civil Liability Act 2002, and cases arising from intentional torts. These legal areas include serious injuries, medical negligence, and acts such as child abuse and assault.
Despite these new measures, existing offences such as fraud remain applicable alongside the new bill. Under current laws, deceiving for a financial advantage can result in a maximum sentence of 10 years in prison.
Importantly, this legislative move will not hinder abuse survivors from pursuing valid compensation claims; they can still seek legal assistance by directly contacting lawyers.
The Attorney General, Michael Daley, expressed the government's intent: highlighting the troubling nature of profiting from vulnerable groups, particularly child sexual abuse survivors. The government's response underscores their commitment to addressing community concerns and curtailing this harmful practice.
Published:Friday, 28th Mar 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
AIA Australia has announced significant updates to its Priority Protection life insurance suite, effective from 9 November 2025. These enhancements are designed to simplify discounts, improve policy clarity, and support premium affordability for policyholders. - read more
Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more
Club Marine, Australia's leading boat insurance provider, has expanded its offerings to include land-based insurance coverage for race boats. This initiative is designed to support participants in the Australian Offshore Superboat Championship (AOPC) by providing protection for their vessels while on land. - read more
Pantaenius Australia, a specialist in marine insurance, has introduced a 90-day lift cover policy designed to provide boat owners with third-party liability insurance while their vessels are out of the water for maintenance or survey purposes. - read more
In 2025, Australians lodged a record 111,373 complaints with the financial watchdog, marking a 14% increase from the previous year. This surge underscores growing consumer dissatisfaction and challenges within the financial services sector. - read more
Australian homeowners have experienced a significant surge in home insurance premiums, with an average increase of 51% over the past five years. This substantial rise has placed a considerable financial burden on many households, particularly those in regions prone to natural disasters. - read more
In June 2025, the Australian Financial Complaints Authority (AFCA) ruled in favour of a policyholder in a dispute over the duration of income protection payments. The case involved Resolution Life Australasia and centred on the insurer's decision to cease payments earlier than the policyholder expected. - read more
In October 2025, Swiss Re, a leading global reinsurer, announced a temporary halt on accepting new life insurance business in Australia. This decision aims to address concerns over the sustainability of Total and Permanent Disability (TPD) products in the market. - read more
Suncorp has successfully finalised its catastrophe reinsurance program for the financial year 2026, achieving a reduction in costs due to improved market conditions. This strategic move is set to bolster the insurer's financial resilience and operational efficiency. - read more
The Australian general insurance industry is on a trajectory for substantial growth, with direct written premiums (DWP) projected to exceed $144 billion by 2029. This forecast, provided by data and analytics firm GlobalData, reflects a compound annual growth rate (CAGR) driven by increasing demand for coverage in response to the rising frequency of natural disasters. - read more
In the world of agriculture, having the right insurance coverage is essential. Farming is a high-risk industry that deals with unpredictable elements, and insuring your farm equipment can safeguard your livelihood. - read more
Farming is a vital industry in Australia, requiring significant investment in equipment, crops, livestock, and labour. As with any major investment, protecting it is crucial. That's where farm insurance comes in. - read more
Welcome to the first steps in future-proofing your farming legacy. When we think about the hustle and bustle of daily farm life, it's easy to overlook the critical importance of estate planning. For the Australian farmer, estate planning is not just a matter of securing your assets; it's about ensuring the survival and progression of your hard-earned labour to the next generation. - read more
Hobby farming has become increasingly popular in Australia, with many individuals and families embracing the joys of growing their own produce, raising livestock, and enjoying a rural lifestyle. Whether it's a small vegetable garden, a few chickens, or a larger mixed farming operation, hobby farms offer both relaxation and a connection to nature. - read more
Farming in Australia is not just a job, it's a way of life. However, it’s also a livelihood that comes with its own unique set of risks. From unexpected weather events to machinery breakdowns, the life of an Australian farmer is fraught with uncertainties. - read more
Australian farmers face an array of natural disasters that can threaten livelihoods and disrupt the delicate balance of agricultural ecosystems. From devastating bushfires and droughts to powerful storms and floods, these catastrophic events pose serious risks to the farming community. Understanding and preparing for these forces is not just about survival; it's about building a sustainable future for farms across the continent. - read more
Farm liability insurance is a type of coverage that protects farmers from financial losses due to legal claims and lawsuits. This insurance is crucial for safeguarding your farm against various liabilities that may arise from farm operations. - read more
Farming, at its core, is an enterprise fraught with uncertainty. Weather calamities, pests, diseases, and fluctuating market conditions can all impact the output and quality of produce. This is where crop insurance proves its worth, serving as a safety net for farmers against the myriad risks they face each season. - read more
For Australian farmers, livestock is more than just a vital asset; it's the heartbeat of their livelihood. In a land where the sunburnt plains are as relentless as they are beautiful, protecting your herd isn't just a duty; it's a necessity. That's where livestock insurance comes into play—a shield against the unpredictability of Mother Nature. - read more
Welcome to the world of farming, where the fruits of your labor are as tangible as the soil you till. But just as the land is subject to the whims of nature, so too is the business of agriculture. This is where farm insurance becomes essential. Farmers face a set of challenges and uncertainties unlike any other industry, primarily due to the unpredictable forces of weather. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Indemnity: A legal principle that stipulates that insurance policies should restore the insured to the financial position they were in before the loss.