The Senate last night passed a major reform that will improve the public liability and professional indemnity insurance environment in Australia, the Minister for Revenue and Assistant Treasurer, the Hon Peter Dutton said today.
A loophole in relation to personal injuries and death claims under the Trade Practices Act has been closed. This will improve the availability and affordability of public liability and professional indemnity insurance. Minister Dutton said.
The legislation will prohibit misleading and deceptive conduct and other unfair practices claims relating to personal injury and death from being made under the Trade Practices Act 1974 . This will encourage individuals to use the appropriate State and Territory negligence regimes. The States and Territories have demonstrated strong support for this policy.
In marked contrast, the Federal Labor Party proposed changes to the Bill that would have undermined the effect of State and Territory reforms.
Labor's amendment shows their determination to oppose good policy as a matter of course rather than, as their State and Territory counterparts have done, embrace sensible reform for the good of consumers.
This reform adopts key recommendations of the Review of the Law of Negligence, chaired by Justice Ipp of the New South Wales Supreme Court. The Review was the result of an agreement between all the States and Territories.
The Review recommended a series of reforms to determine negligence, constrain the award of damages, and change the timeframe in which actions can be brought.
This reform completes the package of tort law reforms, complementing reforms that have already been introduced by all governments in Australia.
Previous Australian Government reforms include professional standards legislation, proportionate liability and introducing benchmarks for damages for personal injury claims. These reforms have already assisted in reducing premiums for public liability and professional indemnity insurance.