Injury Law Reforms Fail On Premiums: States

The Age

Wednesday March 23, 2005

FERGUS SHIEL, LAW REPORTER

SWEEPING national changes to personal injury law have not delivered promised falls in insurance premiums and might never, the states say.

State attorneys-general meeting on the Gold Coast yesterday criticised the Commonwealth and insurers, calling for new powers for the Australian Competition and Consumer Commission (ACCC) to monitor premiums.

But the peak insurance body said premiums had fallen and warned that any legal uncertainty could cause rises. Commonwealth Attorney-General Philip Ruddock said the states were making "hairy chested" claims when the facts showed premiums were not rising.

But Victoria's Attorney-General Rob Hulls and his Queensland counterpart, Rod Welford, led an attack on what they said was the failure of the reforms to benefit ordinary Australians. Mr Welford said there appeared to be "no rhyme nor reason" for the huge rise in insurance premiums for families and community groups.

Personal injury claims in Victoria have plummeted since the Bracks Government, in line with other states, curbed the rights of injured people to sue for damages for pain and suffering two years ago. This followed powerful lobbying from the insurance industry and medical professionals faced with huge public liability premiums.

Insurance Council deputy chief executive Dallas Booth said recent ACCC figures showed premiums had fallen by 15 per cent in the six months to last June and insurers expected them to fall again.

© 2005 The Age

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