Insurance companies will be required to provide affordable public liability products on the basis of a reform package agreed to at an inter-governmental meeting.
The ministerial meeting on public liability held in Melbourne yesterday threw the ball back into the insurers' court, with the Commonwealth agreeing to introduce measures to build on legislative and other changes already enacted in the states and territories.
"Given the substantive initiatives undertaken by governments, ministers called on insurers to respond to the difficulties in the public liability insurance market and participate in developing sustainable and affordable cover for the Australian community," a joint statement says.
While the reforms do not have any direct benefits for business, the meeting agreed to amend negligence laws to help support other tort law reforms enacted in the states and improve resources for the Australian Competition and Consumer Commission (ACCC) to ensure the benefits of reforms are passed on to consumers.
Queensland Treasurer Terry Mackenroth says the negligence review will look at deterring people from acting or failing to act without due care and to provide fair compensation to people injured as a result of negligence or omission by another person.
"Queensland will consider defining or codifying negligence laws once the work of the review has been considered," he says.
The Commonwealth yesterday agreed to:
- introduce legislation to protect volunteers associated with Commonwealth agencies from being sued
- examine, in conjunction with the states and territories, as a matter of urgency, the costs and benefits of exempting eligible not-for-profit organisations from common law damages claims for death or personal injury (other than for intentional torts) and develop options as appropriate
- legislate to allow self-assumption of risk for people who choose to participate in inherently risky activities such as adventure tourism and sports, subject to preserving adequate protection for consumers under the Trade Practices Act 1974
- in conjunction with states and territories, appoint an expert panel of three eminent persons to examine the law of negligence, including its interactions with the Trade Practices Act
- take a lead role, where required, in assisting particularly badly affected groups to develop risk management standards and accreditation requirements
- request that the Productivity Commission carry out a benchmarking study into Australian insurers' claims management practices against world standards
- provide the ACCC with a standing brief to update its Insurance Industry Market Pricing Review on a six monthly basis over the course of the next two years
- compel authorised insurers operating in Australia to provide comprehensive claims data under the Financial Sector (Collection of Data) Act 2001
- introduce legislation on structured settlements during this sitting of Parliament.
Federal Minister for Revenue and Assistant Senator Helen Coonan says the states and territories have made substantial moves towards alleviating the problem.