ICA’s dream of a uniform approach to law reform across the Commonwealth, states and territories is slipping away. But it’s still urging everyone to get into line, with an unchanged appeal in its submission to the Federal Government-appointed expert panel looking at reforming negligence laws.

The panel was set up in June, and is investigating claims that a rise in personal injury claims has driven up the cost of public liability insurance. ICA wants a uniform approach that will prevent claimants “shopping around” between different jurisdictions.

As the system stands claimants normally sue through federal or state laws or choose to sue through tort, contract, statute or common law. 

ICA Executive Director Alan Mason says consistency in the legal system is vital. “ICA recommends a package of reforms which will provide the same result regardless of where a claim is made or on what legal basis it is made.”

He said the cost of insurance is a “direct reflection” of negligence claims. “After heavy losses, insurers are pricing premiums at a level which they hope will restore profit in the future.”

ICA’s submission also calls for a range of other reforms including thresholds and limitations on “pain and suffering”; limitations on future earnings for high-income earners; a system of proportionate rather than joint and several liability; early notification of claims and fixed time limits for making claims. It also wants a provision that an admission of sorrow or remorse does not mean an admission of liability; and allowing participants in high-risk activities to assume some of the risk.

The submission says the impact of reforms is likely to depend on a number of factors including “the circumstances of individual insurers, their risk exposures, their prudential regulatory obligations and their views as to the likely future cost of claims they are insuring”.