The slanging match continues between insurers and lawyers as the personal injury and compensation tort reform battle rages. Last week Productivity Commission figures showed court claims nationally have fallen by 43,000 in three years.

Meanwhile, several law firms have pulled out of the liability capping scheme put in place last year. The scheme was set up to put downward pressure on premiums. It allows lawyers who sign up to a professional standards scheme to insure against negligence claims up to the level of the cap, which is high enough to meet most claims.

Rod Frail, Executive Manager of Corporate Affairs at the Insurance Council of Australia, says it is too soon to make changes. The legislative reform program is not finished and there hasn’t been enough time for reforms to work their way through the legal system.

“But we can say with confidence that tort reform has had a positive effect on the market,” he said. “There have been premium decreases in NSW for compulsory third party motor.

“Price increases have moderated and availability has improved, but it will take time for the impact of these changes to become fully evident in claims experience.”

When the Government gains control of the Senate later this year, amendments to the Trade Practices Act which were stalled by the Opposition will be pushed through.

Currently litigants can bypass state and territory laws, which are not uniform, and use the federal Trade Practices Act to make claims.

Phillips Fox Partner Michael Gill says he is aware of IAG reducing rates and Suncorp applying a freeze. “At Phillips Fox we have experienced a decrease in claims which shows tort reforms are having an effect,” he said. “We are also seeing more competition from overseas – such as Lloyd’s in the liability area.”

Mr Gill says amendments to the Trade Practices Act will close off certain advantages for plaintiffs. “They go hunting to see what the best option is, and it has been attractive to take advantage of Commonwealth legislation.”

Recent reports in the Australian Financial Review stating his firm had pulled out of the liability cap scheme are incorrect, he said. Phillips Fox was never part of the scheme.

Trowbridge Deloitte MD Colin Brigstock says the law fraternity’s reaction to the legislative changes is not unusual. “It’s always easy to wheel out individual cases where someone has been unfairly treated. This alone is not sufficient to expect that rules restricting access to damages will be changed.”