The Senate’s refusal to pass key amendments to the Trade Practices Act (TPA) for the second time in two months has angered insurance industry leaders.

The delay­ ­– caused by the Labor Party, the Democrats and the Greens – leaves a big gap in finding answers to the ongoing public liability crisis, according to Insurance Council of Australia (ICA) Deputy CEO Dallas Booth.

He says that to slow litigious behaviour, it is critical the TPA (Personal Injury and Death) Bill be passed. That will remove the ability to take proceedings for personal injury and death under Part V, Division 1 of the TPA, which relates to misleading or deceptive conduct.

Mr Booth says failure to pass the amendments will allow the TPA to become “an attractive legal alternative” and insurers will continue to face uncertainty about the cost of claims.

“A range of other remedies for people who suffer loss or damage is still available under the TPA and criminal proceedings can still be brought under the Act,” he said. “That is why Justice Ipp and his committee, which reviewed the law of negligence, recommended these amendments.”

The Ipp Report found that while there hasn’t been a great deal of litigation under this section, reforms of more litigious sections of the Act would see an increase in legal action.

“ICA supports the bill as it stands, as do the states and territories,” Mr Booth said. “We urge the ALP and the Democrats to work with the Government to resolve this impasse as quickly as possible to provide a workable outcome that will give insurers confidence about the reform program.”