Political wrangle over insurance continues

The Federal Government is accusing both the Federal Opposition Australian Labor Party and the Australian Democrats of creating greater uncertainty in the insurance market for professionals by seeking to impose key amendments to Government legislation changing the Trade Practices Act.

The Assistant Treasurer, Senator Helen Coonan says the amendments being sought by the Opposition and Democrats to the Government’s Trade Practices Act (Personal Injuries and Death) Bill will result in greater uncertainty and complexity for plaintiffs in the insurance market.

The Insurance Council of Australia has called on the Opposition parties to support passage of the legislation before Christmas and it has been generally acknowledged that it will assist in reducing insurance costs impacting on a range of areas, including financial planning.

“The amendments proposed by the ALP and the Democrats leave the way open for the Trade Practices Act to become a vehicle for individuals seeking to side-step sensible State and Territory law reform,” she says.

“Governments across Australia have been working diligently to resolve problems in public liability, professional indemnity and medical indemnity insurance. Nobody, and particularly not those struggling to meet insurance costs, will thank the ALP for attempting to derail the process at this late stage,” Senator Coonan says.

“Under the Opposition’s approach, a range of professionals will continue to be under threat of litigation for conduct, regardless of whether they were at fault or not. This fails to resolve uncertainty in the insurance market,” she says.

However the Australian Democrats spokesman on Consumer Affairs, Senator Aden Ridgeway says the Government’s legislation has the potential to remove vital consumer protection measures and represents “a completely disproportionate response to a non-existent problem”

“The Government’s proposals jeopardise consumer rights and, even though we have recognised the importance of previous insurance reforms, we are not prepared to totally remove consumer rights in this Bill when there is no justification or urgency for it,” he says.

“The joint ALP and Democrats amendments will limit the amount of damages to be consistent with the civil liability laws of the state or territory where the loss or damage occurred, and still enable the Australian Competition and Consumer Commission to take representative actions where necessary to enforce high standards of conduct under the Trade Practice Act,” Senator Ridgeway says.