Plaintiff lawyers in Victoria are maintaining their barrage of criticism of tort reforms which include subjecting small personal injury claims to a threshold of 5% for general damages. Changes to the statute of limitations are also planned.

Insurance Council of Australia Group Manager Southern Region Peter Jamvold told Sunrise Exchange News it’s far too early to assess the impact on premiums. “We’re pleased the Victorian Government has introduced reform, but now we have to look at what it will mean for insurers,” he said. “From here on in it’s up to insurers what they do. It will take some time. It’s their capital they’re putting on the line.”

The degree of impairment will be assessed through criteria set out by the American Medical Association Impairment Guidelines, which is already used by the Victorian motor accidents and workers’ compensation authorities.

The period for making claims for personal injury will be reduced from six years to three years and claims for personal injury for minors under 18 will be six years.

Personal injury claims will also be subject to the Ipp Review’s recommendations, which bar the claim 12 years after the event which caused the injury, even if it has not been discovered. Mr Jamvold said this will help to improve the predictability of claims data.