Having dragged the chain on tort reform – and received a bucketing for it from the Federal Government – Victoria is set to implement a legislative reform package in the spring session of Parliament. The package is similar to the approach taken by most of the other states, which have declined to take the tough NSW line. It regulates payouts for death or injury arising from the claimant’s voluntary participation in adventure activities and provides protection for volunteers and “good Samaritans”.

The package will also cap general damages for personal injury awards to a maximum of $360,000 and loss of earnings awards to three times average weekly earnings. Further proposed reforms may include structured settlements instead of lump sum payments and removing people’s right to claim damages if they are injured while engaged in criminal activity or while under the influence of drugs.

Victorian Finance Minister John Lenders says the package will provide “the opportunity for significant insurance premium relief”.

Despite the Federal Government already requesting that the ACCC monitor insurers, he said the Bracks’ Government wants to make sure that any specific savings from its package are passed onto consumers. “We have asked the ACCC to monitor developments,” Mr Lenders said.

He said that the legislative package also meant that insurers would have to consider Victoria as another market into which they could expand. “Insurers such as Suncorp will now have to reconsider their position about offering [liability] insurance in this state given that  [our] reforms put Victoria in line with Queensland.”

Mr Lenders said other reforms introducing such features as a legal cost threshold and a revamp of legal procedures will be introduced before Christmas.