Hon Nick Goiran questions the Treasurer regarding claims harvesting related to motor vehicle insurance, revealing a significant increase in such activity. The government is drafting legislation to address the issue.

AnsweredQoN 173Legislative Council
Asked
23 February 2023
Portfolio
minister representing the Treasurer

QuestionView source ↗

INSURANCE — CLAIMS HARVESTING
173. Hon
NICK GOIRAN to the minister representing the Treasurer:
I refer to the Treasurer's
letter to the Law Society of Western Australia dated 9 February 2023 regarding
claims harvesting.
(1) When was the
Treasurer most recently briefed by the Insurance Commission of Western Australia
about claims harvesting?
(2) Will the
Treasurer table the most recent briefing note, or similar document, he has
received about this?
(3) Has ICWA noted an increase in
claims harvesting?
(4) If yes to (3), what has been the
increase and over what period of time has this been noted?

AnswerView source ↗

I thank the honourable member for
some notice of the question. I provide the answer on behalf of the Minister for
Emergency Services.
(1)–(4) Claims
harvesting, or claims farming, is predatory behaviour that involves practices
designed to entice people to make personal
injury insurance claims. Despite a reduction in injuries resulting from car
crashes in Western Australia, the volume of claims made continues to
increase. It is suspected that around 30 per cent of claims made in WA for
compulsory third party motor insurance are the result of claims harvesting
activity, up from around nine per cent in 2017–18. This will not be
tolerated, and the McGowan Labor government is moving to stamp it out. The
drafting of legislation to stamp out claims harvesting practices in motor
vehicle injury insurance claims is currently underway.

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