The newly reshuffled Malinauskas Cabinet has announced new reforms to stop predatory behaviour towards personal injury claimants. Photo: Peter Malinauskas, Facebook.
The South Australian Government is moving to protect victims of personal injury from predatory behaviour, with new legislation having passed Parliament.
New laws will ban the practice known as “claim farming”, whereby an individual or business makes unsolicited contact with a victim who may have ground for a civil injury claim, in an effort to obtain their personal information and receive a kickback for then referring them to a law firm so that the victim may pursue compensation.
The bill will prohibit unsolicited contact with another person to solicit or induce them to make a personal injury claim in the expectation that they will receive a benefit. It will also make illegal the practice of giving or receiving a benefit in exchange for the personal details of someone who may have a personal claim.
The Royal Commission into Institutional Responses to Child Sexual Abuse drew attention to the practice of claim farming, with several victim survivors reporting that they had been called by businesses and law firms soliciting for clients in compensation claims.
Claim farmers commonly use inappropriate or exploitative contact methods, making deceptive promises of quick and easy compensation.
“Targeting vulnerable people who have been injured, including victims of abuse, at a point in their life where they desperately need help and support, simply to try and make a quick buck, is gutter behaviour,” South Australian Deputy Premier Kyam Maher said.
“Whilst all persons with an injury are vulnerable to some degree, claim farmers often target people with vulnerabilities additional to the injury.
“It is immoral behaviour that soon, due to the government’s proactive work in this area, will be illegal.”
The government said such contact with someone suffering an injury disrespected their autonomy and wellbeing, as in many cases the injured party was not prepared to speak about their injury.
New laws would punish those engaging in the practice, with a fine of up to $50,000, and lawyers who participate in such behaviour would face disciplinary action under the Legal Practitioners Act.
Victims can still be contacted at their request, for a class action or for altruistic reasons, where the person reaching out does not expect or intend to receive, and does not receive, any benefit as a result of the approach.
The government also said the new laws would not prevent victims from bringing compensation claims.
