The Victorian Government’s liability laws reform package passed through the state’s Lower House of Parliament last week without opposition. The Wrongs and Others Acts (Public Liability Insurance Reform) Bill 2002 includes caps on payouts and waivers and provides protection for volunteers.

The Bill’s progress through the opposition-dominated Upper House isn’t expected to be a problem, and the Act could be in force as early as mid-November.

Finance Minister John Lenders said legislation will “ensure the continued availability and affordability of insurance, as it underpins Victoria’s economic and social fabric”.

The reforms allow waivers for people engaging in risky activities; cap loss of earnings to three times average weekly earnings; cap non-economic losses of $371,380, indexed to the CPI, and set the discount rate at 5%.

The legislation also protects volunteers and good Samaritans, ensures an apology isn’t an admission of liability, and enables structured settlements to be set up.

An Insurance Commissioner will be appointed to the Essential Services Commission, with responsibility for collecting data.

But insurers say the Victorian reforms don’t include a threshold for damages like legislation in NSW. “Without thresholds there tends to be a blow-out in claims for general damages,” ICA’s Executive Manager Corporate Affairs Rod Frail said. “While the Victorian Bill does cap damages for the top end of claims, it does not impose thresholds to eliminate small and frivolous claims.”