Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, today welcomed the New South Wales Government's package of measures on Public Liability Insurance.
"Its great to see Bob Carr taking responsibility for public liability insurance and putting forward a constructive course of action on behalf of New South Wales," Senator Coonan said.
"I look forward to discussing the proposals in detail with my State colleagues at the Ministerial Meeting in Canberra on the 27 March 2002."
Senator Coonan said a wide range of options for legal, institutional and risk management reform had been canvassed by State Governments in the lead up Ministerial Meeting.
"One of the aims of the Meeting will be to look at the States' proposals and examine whether there is any scope for developing a nationally consistent approach."
Senator Coonan said one of the Commonwealth's most important reforms would be to provide tax relief to catastrophically injured people who choose to take a structured settlement guaranteeing them a stream of income payments over their life time.
"These important reforms will make it more attractive for catastrophically injured people to take up a structured settlement, which guarantees their care in the long term, rather than a one-off lump sum payment."
The new measure is due to be introduced into Parliament this year.
The Commonwealth has also introduced a range of comprehensive reforms to the prudential regulation of Insurance companies including -
- A comprehensive overhaul of prudential standards to better safeguard consumer rights, strengthen capital adequacy requirements and risk management practices in the General Insurance Reform Act 2001, which is due to commence on 1 July 2002, and
- Increased disclosure and licensing requirements for Insurers through the Financial Services Reform Act 2001, which commenced on 1 March 2002.