Commentary on Sections Civil proceedings relating to personal injury Section 59: Effect of rules against inducements
509.Section 59 requires relevant regulators to have arrangements in place to monitor and enforce the ban on offering inducements to make personal injury claims. Subsections (2) and (3) permit regulators to make rules and to use existing powers to enable them to monitor and enforce the ban. Subsection (4) provides that a breach of the ban would not make a person guilty of an offence or give rise to a right of action for breach of statutory duty.
510.Under subsection (6), rules are able to provide for the offer of a benefit to be treated as an inducement to make a claim unless the regulated person can show that the benefit was not offered as an inducement, either because it was offered for a reason other than encouraging the person to make a claim or to seek advice from the regulated person about making a claim, or because the benefit offered was related to the provision of legal services in connection with the claim. Subsection (5) defines the circumstances in which subsection (6) applies.