Flood Victim “Claim Farmers” Warned About Insurance: State Minister

Queenslander citizens caught in a deadly flood have been warned to be wary of “claiming farmers” who often appear to assist in claiming after a disaster.

Claim farmers establish themselves as a company that provides “claim management services” and act as an intermediary between claimants and insurance companies.

The warning comes from a severe flood across Australia’s east coast that has so far killed 13 Queenslanders and eight people from New South Wales. The current situation is paramount for these companies to target vulnerable flood victims.

“We want to protect Queenslander citizens, understand the risks, and avoid being the victim of a signed agreement during stressful times,” said Attorney General and Minister of Justice Shannon Fentiman. statement..

“Many of these claims tempt customers to use the service by offering free inspections, promising that your claim goes to the top of the line, or promises guaranteed cash settlement. increase.

“Sadly, I’ve heard cases where Queenslander citizens were given the impression that the person came from the government or acted on behalf of a law firm.”

The Minister said it is important for Queenslander citizens to understand that no intermediary is required and that they can deal directly with insurance companies.

“If you’re considering registering for an issue tracker, it’s very important to understand the risks,” she said.

“And, importantly, you must not sign anything that prevents you from dealing directly with an insurance company, broker, financial adviser, or your lawyer.”

Using Claim Farmer’s services carries a number of related risks associated with how they operate.

Companies often negotiate cash payments with insurance companies, which can lead to problems such as losing options for repair negotiations and getting out of hand if repair costs are uncertain.

Claimed farmers can deliberately overestimate their claims and inflate their rates, causing long delays when trying to negotiate an unrealistic amount with an insurance company.

In addition, the contract with the billing management service is a civil contract. This means that if a problem arises, it needs to be resolved by a lawyer or even a court. The petitioner is also the Australian Securities and Investment Commission (ASIC).

The Attorney General said Queenslander, concerned about Claim Farmer’s actions, needs to be contacted. ASIC..Insurance regulations are within the responsibility of the federal government and the law is ASIC..

Epoch Times Sydney Staff