Brought to you by:

Public Liability Update

While NSW is forging ahead with its tort reforms, the likelihood of a national approach looks doomed because of indecision in the other states.

Last week, the NSW Government introduced the second phase of its tort reform package under the Civil Liability Amendment (Personal Responsibility) Bill. In line with the Federal Government’s expert panel report on negligence, which was also released last week, the Carr Government’s package covers negligence law reforms and the introduction of proportionate liability.

Proportionate liability limits the amount of damages defendants pay by holding them liable only for the loss or damage for which they are directly responsible.

ICA Executive Director Alan Mason commended the NSW Bill for “going further by addressing areas in which the claimant is intoxicated or committing a crime”.

However, while NSW has taken a hardline approach to tort reform and is keen to push ahead, the other states remain at a standstill – and that concerns ICA. “Basically NSW is doing a lot of good things and what we are urging the other states and territories to do is to have a serious look at NSW and the recommendations of the Federal Government’s negligence review,” ICA National Public Affairs Manger Sandie Watson said.

Despite the ICA’s concern, Federal Assistant Treasurer Helen Coonan says that a national approach to tackling the public liability insurance crisis does not require every state and territory to adopt uniform laws as long as they follow in the same direction.

She said the Federal Government will not decide on proportionate liability before receiving the second tort law reform report which is due at the end of this month.