The Senate has passed three major reforms which will significantly change the insurance landscape in Australia, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan said today.
Professional standards legislation, proportionate liability and the implementation of a benchmark for personal injuries damage in the Trade Practices Act will improve the affordability and availability of public liability and professional indemnity insurance.
“Professional standards legislation is a win for consumers and a win for professionals,” Senator Coonan said.
“The legislation will improve risk management strategies, require professionals to hold insurance, enforce professional education and complaints and disciplinary mechanisms, in return for offering professionals access to capped liability for economic loss.
“Ultimately, this policy approach will be of benefit to professionals and consumers alike. It is a win/win solution to what has been a very difficult problem.
“The passage of professional standards laws comes shortly after the Parliament’s passage of the proportionate liability reforms included in the Government’s CLERP 9 corporate law package.
“Like professional standards laws, proportionate liability will help with the very real issues facing Australians seeking professional indemnity insurance, and help the community by reducing the likelihood of professionals simply going without insurance, putting themselves and their clients at risk.
“Although there are still important reforms to the Trade Practices Act which are being irresponsibly stymied by ALP and Democrat Senators, the reforms passed by the Senate today are important step in implementing a nationally agreed framework of balanced and principled tort law reforms.
“The reforms passed today establish a new limitation arrangement for personal injuries and death claims pursuant to an unconscionable conduct claim, a contravention of the product safety and information provisions, a supply by a manufacturer or importer of unsatisfactory consumer goods, or a supply by a manufacturer or importer of defective goods.
“The majority of the Government’s tort reform agenda, to support state-level reform and restore balance to the liability system, is now completed.
“It is time Labor stopped playing politics, dropped their idiosyncratic and out-of-step views and worked with the Government to complete the reform agenda in the interests of the community.”