Queensland Magistrate’s Shocking Judgement with $1 Million Fine for Disgraced Liquidated Firm in First-Ever Claim Farming Prosecution
In a landmark ruling, a Brisbane Magistrate has dealt a crushing blow to claim farming by fining Accident Management Solutions Pty Ltd (AMS) a staggering $1 million in the state’s first successful prosecution under new laws. Peter Saggers, the presiding Magistrate, convicted AMS on 94 counts of receiving consideration for claim referrals or potential claim referrals, marking a huge victory for the Motor Accident Insurance Commission (MAIC).
The MAIC released a statement announcing their triumph over claim farming, also known as ‘claims management services’, a notorious practice where third-party agents cold-call people and force them into making personal injury claims. The statement emphasized that the MAIC had taken “decisive action to protect Queenslanders from claim farmers’ aggressive tactics and breaches of privacy”.
After the legislative reform in 2019, over 1.5 million Queenslanders were targeted by claim farmers who used threatening tactics to obtain personal information and sell it for profit. The MAIC statement confirmed that since the changes to the CTP insurance scheme legislation in December 2019, the commission has closely monitored and investigated reports of claim farming.
AMS entered liquidation in June 2022, but not before being fined a total of $1 million for the 94 claim farming offences and $5,000 for contravening an information requirement. All convictions were recorded, marking the first successful prosecution in the ongoing enforcement against claim farming.
Claim farming was officially banned in Queensland in June 2022, with the passing of the Personal Injuries Proceedings and Other Legislation Amendment Bill 2022. The MAIC continues to work tirelessly to deter claim farming and preserve the integrity of Queensland’s CTP insurance scheme.