Public liability insurance relief package

16/7/02
The State Government has developed a five-point-plan to address the public liability insurance crisis.
Premier Geoff Gallop said the plan would directly help a range of key community groups and assist sporting organisations and small businesses that were struggling to meet the rising cost of public liability insurance.
Dr Gallop said the insurance industry had a responsibility to ensure that premium reductions flowing from the reforms were passed on to consumers.
"This is an extremely complex national issue that will take time to resolve," he said.
"Our five-point-plan attacks this crisis on a number of fronts but at the end of the day it will be up to the insurance industry to provide affordable cover to the community and the Commonwealth to ensure that it does so."
Details of the five-point-plan include:
1. Law reform - ensuring a fair and predictable system for all
As part of the national response to public liability insurance matters, the Government has agreed to a number of legal reforms that aim to reduce public liability insurance exposure or risk and/or improve insurance cost and availability, through:

• slowing the rate of increase of public liability premium increases;
• claims cost containment for the future;
• improving certainty and predictability in the insurance system; and
• changing social and legal attitudes towards the assumption of and liability for risk.

A Tort Law Reform Bill, that will include a threshold for general damages, capping of economic loss and restrictions on advertising by legal practitioners in the personal injuries area, will be introduced into the Spring Session of Parliament.
Further reforms will be introduced in a second stage to coincide with amendments to Commonwealth legislation and the national Review of the Law of Negligence.
"It is important to ensure that any changes to tort law will lead to a fair and more predictable system," Dr Gallop said.
2. Government's insurance arm to provide cover to essential not-for-profit services
Legislation will also be introduced to enable the Government to provide insurance cover to not-for-profit groups that are aligned to Government, provide an essential service to the community and are unable to obtain affordable cover.
The Premier said this would include groups such as school P & Cs, and non-Government organisations providing health services for the Government, such as the Women's Breast Screening Service.
"The Bill will grant greater flexibility to Government departments to extend their public liability insurance through RiskCover to selected not-for-profit organisations providing important services to the public," he said.
"A wide range of important organisations will be eligible under this scheme after they have been assessed by the Government insurer."
3. Risk management and public safety awareness campaign
A risk management and public safety awareness campaign is being developed that will benefit all businesses and the community alike. This will be done in co-operation and consultation with Government agencies, business and community groups.
4. Helping businesses and community groups achieve bulk buying power through pooling
The Government is also considering the best way to facilitate a number of pooling proposals for not-for-profit and community groups that are being submitted by key groups and associations.
The Premier said pooling would allow not-for-profit groups and community organisations to secure public liability insurance at an affordable cost and it was expected one or more of these schemes could be in place by the end of the year.
5. Volunteer (Protection from Liability) Bill 2002 - protecting volunteers who serve the community
The Government's Volunteer (Protection from Liability) Bill 2002, providing many volunteers with qualified immunity from personal liability when doing community work, is currently before Parliament and has already passed through the Lower House.
Premier's office: 9222 9475