Victoria is about to experience an increase in liability claims, according to Allianz National Manager Liability Claims Lori Callahan.

Speaking at the recent Australian Insurance Law Association conference in Hobart, Ms Callahan said the regulations on how plaintiff lawyers must present their clients’ claims weren’t finalised and gazetted until May this year.

“In Victoria, there is no experience yet from tort reform,” she said. “This is because the most significant changes were enacted in October 2003.

“Thus, the unintended consequence of the Victorian reforms has been the 20 months which passed from the time the reforms were enacted until the time when claims began to commence.

“Now, with the regulations in place, claims that have been waiting for presentation to insurers should begin to emerge.” 

Ms Callahan says Queensland has had a significantly different experience from the other states.

“The [Queensland] law established pre-litigation procedures [which] include a very short timeframe for naming of other defendants. This means other defendants are drawn into the claim before an adequate investigation can be conducted to determine if the claim against the other defendant is valid.” 

The unintended consequence is therefore what appears to be an increase in claims and an increase in claim costs.

“Claim numbers appear to be increasing not because more people are being injured negligently, but because the increase in co-defendant claims causes an increase in claim numbers, even if after investigation the claim is dismissed,” she said.