Minister for Revenue and Assistant Treasurer Senator Helen Coonan today announced that a ministerial meeting she chaired in Brisbane had agreed to a landmark package of negligence reforms to make insurance more affordable.
Senator Coonan said all Ministers had agreed with the thrust of the reforms of the Review of the Law of Negligence, chaired by Justice David Ipp, and would introduce laws to implement the majority of the reforms recommended.
Ministers also received an actuarial report by PricewaterhouseCoopers which found that the Ipp package could reduce public liability insurance premiums by around 13.5 per cent. Significant reductions in medical indemnity insurance premiums of between 15 and 18 per cent were also estimated for most jurisdictions.
"As of today we have the evidence that the Government's leadership of a national approach is on track and will bear fruit for Australian consumers," Senator Coonan said.
"Since we began meeting in March, we have identified the problem, developed a concrete solution and there is clear evidence that the approach will work.
"The Commonwealth has already introduced significant reforms to the Federal Parliament. Today I announced that the Commonwealth would amend the Trade Practices Act to complement State and Territory law reform.
"I urge all State and Territory Governments to maintain the momentum of reform and bring legislation before their State Parliaments as a matter of urgency.
"The high price and lack of availability of public liability insurance has hurt many community and sporting groups, businesses and individuals around the country.
"Ministers at today's meeting also questioned representatives of the insurance industry on the issue, and received assurances that the proposed reforms would make insurance more available and that cost savings would flow through to consumers.
"Professional indemnity insurance was also discussed at length and there was strong agreement on proportionate liability for economic loss with some jurisdictions firmly committed to implementing legislation and others close to finalising their positions. It was agreed that the issue of capping liability and risk management via professional standards legislation should be considered in detail as part of the Ministerial forward work program."
The package will be referred to COAG in December for endorsement.