24 February 2004

Review of the Insurance Contracts Act 1984: Release of Issues Paper on Second Stage

An issues paper on the second phase of the Review of the Insurance Contracts Act 1984 was released today, the Parliamentary Secretary to the Treasurer, Ross Cameron MP, said.

The Review was announced in September last year by the Minister for Revenue and Assistant Treasurer, Senator Coonan, and the former Parliamentary Secretary to the Treasurer, Senator Ian Campbell. It is being conducted by former Chairman of the Australian Securities and Investments Commission, Mr Alan Cameron A.M. and Ms Nancy Milne, a partner at Clayton Utz specialising in insurance law.

The first stage of the review focused on section54 of the ICAct, due to concerns about its potential effect on the availability and affordability of professional indemnity insurance. Draft amendments to give effect to the Review Panel's recommendations regarding section54 were recently released for stakeholder consultation.

The paper released today on the second phase of the review covers the remainder of the IC Act, seeks detailed submissions on various matters raised with the Panel in prior consultations.

The Hon Ross Cameron MP, Parliamentary Secretary to the Treasurer, said:

    "I encourage stakeholders in the insurance industry, consumers and other interested parties to make submissions on the consultation draft provisions and the issues paper and I look forward to the Review Panel's final report to the Government, scheduled for the end of May."

The second stage issues paper and the consultation draft on section 54 are both available on the Review Panel's website, http://icareview.treasury.gov.au.

Submissions on the second stage issues paper and the draft amendments regarding section 54 are due on 16 April 2004.