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Claim farming

Claim farming

Claim farmers approach people and pressure them into making a claim for compensation. They then sell the information to a law practice or claims management service to handle the claim. Claim farming is an offence.

Learn about claim farming

Watch this video to learn about claim farming.

Regulations against claim farming

It is an offence for legal practitioners to engage in claim farming.

The claim farming laws:

  • make it an offence for law practices to pay claim farmers for claimants’ details or receive payment for a claim referral
  • prevent law practices from using inappropriate costs practices
  • require legal practitioners who represent claimants to certify with a law practice certificate that they are not paying a claim farmer.

It is an offence for claim farmers to cold call or approach another person to solicit or induce them to make a claim.

Have I been claim farmed?

Claim farmers often cold call, offer help to make a claim, or imply they act on behalf of a government agency or insurer.

Typically, claim farmers charge substantial fees to the law practice, who charges these fees onto the claimant.

You may request a copy of your costs agreement and an itemised bill from your lawyer. 

If the bill has costs you don’t understand, discuss them with your lawyer. 

If they can’t explain the costs to you, this may be an indication of claim farming.

Reporting claim farming

Certificates

Claimant certificate

A claimant certificate is required for claimants making personal injury or motor vehicle claims.

It certifies that you made the claim on your own initiative, stating whether you were induced to make the claim and whether your lawyer paid someone for referring your claim.

Download the certificates below.

Notice of Accident Claim Form for motor vehicle accident claims

Download

Claimant certificate for other personal injuries

Download

Law practice certificate

Your lawyer must also complete a certificate to certify that they haven’t engaged in claim farming.

They may give you a copy of the certificate.