Just as the NSW Government has developed a scheme to assist the catastrophically injured, a parliamentary committee has held its fourth public hearing into issues surrounding personal injury compensation.

The NSW parliamentary inquiry into personal injury compensation was established last December to investigate the operation and outcomes of tort reforms introduced in 1999. Its particular focus is on the reforms’ impact on insurance premiums.

The Law Society of NSW says major insurers “are diverting profits into claims reserves to escape public criticism over excessive profit growth”.

“In [the Insurance Council of Australia’s] submission to the inquiry, insurance premiums in Australia (2004) totalled $25.9 billion, but insurance companies paid out only $13.75 billion in claims,” Law Society President John McIntyre said. “The public is still waiting for insurers to explain where the remaining $12 billion went.”

The lawyers’ constant attacks on the industry come despite the Australian Competition and Consumer Commission finding nothing wrong with the insurers’ handling of public liability. Of more concern is the fact that some major legal figures, including four chief justices, have also made plain their opposition to the reforms.

The parliamentary committee will hold a further hearing on July 4.