6 August 2003

Professions win National Scheme

Today's sixth Ministerial meeting on Insurance Issues endorsed a national scheme for professional standards legislation for economic loss.

This, in conjunction with a commitment to implement proportionate liability across Australia, is a significant step towards introducing greater certainty in the professional indemnity market.

The Minister for Revenue and Assistant Treasurer, Senator Helen Coonan said:

"Australia's professionals should welcome the actions of all Australian Governments here today. We have listened to their concerns and responded.

"For its part, the Federal Government is firmly committed to initiatives to improve the affordability and availability of professional indemnity insurance.

"We will be moving quickly to introduce amendments to the Trade Practices Act and other legislation to support both proportionate liability and professional standards legislation."

Ministers also considered the issue of long term care for the catastrophically injured.

"This is a complex issue that requires careful analysis. Detailed work done by the Insurance Issues Working Group and a very comprehensive presentation to the meeting will be followed up by further work to progress a viable model to be implemented on a national basis," Senator Coonan said.

"The ongoing review of long term care will also involve further consideration of professional standards legislation for doctors."

Ministers also agreed that improving international insurers' understanding of the extensive reforms undertaken in the Australian market is essential to maximising the availability of cover.

An official report will be prepared for the information of key international insurance providers.