The insurance industry is growing anxious about the Federal Government’s seeming lack of urgency in processing Trade Practices (Personal Injury and Death) Bill reforms. Eyeing off the Government’s increasing focus on matters electoral, the Insurance Council of Australia (ICA) says action now will greatly improve the availability of public liability cover.

ICA’s Executive Director Alan Mason says it’s crucial that the reforms recommended in October last year by a panel led by Justice David Ipp are passed before the Christmas break.

He says the essential piece of negligence reform needed will prevent plaintiffs from “forum shopping” from state to state to better their chances of being awarded large payouts. Litigation loopholes under the current legislation allow plaintiffs to use the law to arrange proceedings to their own benefit.

“[The Bill] removes the ability to take proceedings for personal injury and death under Part V of the Trade Practices Act, which relates to misleading or deceptive conduct,” he said yesterday. “Failure to pass the amendments will allow the Act to become an attractive legal alternative now that the states and territories have introduced tort reforms.”

Mr Mason told Sunrise Exchange News he fears the volatile liability market will continue if the Government doesn’t act soon. He says even if the Bill is passed before Christmas, the reform process is “far from complete”, with further Trade Practices amendments not expected to reach Parliament before next year.

“The latest Australian Competition and Consumer Commission pricing survey concluded it was too early to say the extent to which reforms had lowered insurers’ costs,” he said. “However, it also found that insurers expect conditions to continue to improve as the reform program concludes.”