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flag Victorian councils face backlash for using unregulated contractors to unjustly deny injury and property claims, with a report revealing widespread improper rejections and unfair settlement practices.

flag Melbourne councils are under scrutiny for using private contractors to deny legitimate compensation claims for injuries and property damage, with a Victorian Ombudsman report revealing that over half of Victoria’s councils outsource small claims to unregulated firms. flag These contractors frequently reject claims without proper review, even when liability is clear, and use intimidating tactics or low settlement offers—sometimes as little as 8% of value—to pressure residents. flag Some claimants were denied payouts due to arbitrary thresholds or forced to sign broad legal releases waiving future rights. flag The Ombudsman condemned the practice as a failure of public duty, noting residents are often unaware of their right to appeal, though no councils were named. flag The Municipal Association of Victoria defended the process as standard, placing the burden on claimants, while the government called for fairer, more transparent handling.

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