NSW Ban on Paying for Motor Accident Injury Claim Referrals

Motor Accident Injuries Amendment (Claim Farming Practices Prohibition) Bill 2025

Legislative Assembly

Legislative Council

Assent

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Introduced by: The Hon Jihad Dib MP (ALP); The Hon John Graham MLC (ALP)

Effects of this bill

If this bill passes, it means that:

It is a criminal offence to pay or receive money for referring someone to make a motor accident injury claim.
It is a criminal offence to contact a person to solicit a claim if the caller expects payment for doing so.
Lawyers who break these referral rules may be found guilty of professional misconduct.
Law practices convicted of these offences cannot charge legal costs for the claim.
Convicted law practices must refund any legal costs already received for the claim.
A new medical assessment certificate overrides any previous inconsistent certificates.

The Debate

What different members said when this bill was debated:

Sally Quinnell ALP

“I am pleased to support the Motor Accident Injuries Amendment (Claim Farming Practices Prohibition) Bill 2025, which seeks to prohibit the exploitative network practices commonly referred to as "claim farming" within the New South Wales compulsory third party [CTP] scheme. The bill introduces offences for contacting potential claimants or referring claims in exchange for monetary benefit.”

Official source →

Hugh McDermott ALP

“Imagine driving home after a long shift or when your kids are in the back seat. Your phone rings through the car speakers. A voice says, "We understand you were recently in a car accident. We want to help you get what you really deserve." You were in such an accident months ago. After months of recovery, you and your family have moved on.”

Official source →

Jodie Harrison ALP

“I thank the members representing the electorates of Terrigal, Gosford, Mount Druitt, Camden and Prospect for their contributions to debate on the Motor Accident Injuries Amendment (Claim Farming Practices Prohibition) Bill 2025, which makes important amendments for the protection of the people of New South Wales.”

Official source →

News articles and press releases

Motor Accident Injuries Amendment (Claim Farming Practices Prohibition) Bill 2025

Mr JIHAD DIB, Minister for Customer Service and Digital Government — 2025-11-19

The bill amends the Motor Accident Injuries Act 2017 and makes consequential amendments to the Legal Profession Uniform Law Application Act 2014, the Claim Farming Practices Prohibition Act 2025 and the Motor Accident Injuries Regulation 2017. The bill prohibits a person from contacting another person to encourage them to make a relevant claim with the expectation of receiving a fee or other benefit, and buying or selling a relevant claim referral. The bill also makes miscellaneous amendments to preserve the process of insurer insolvency in the New South Wales compulsory third party [CTP] scheme and clarify the status of further medical assessment certificates.