An independent body should be appointed to set the “price of liability” when NSW moves to a hybrid no-fault compulsory third party scheme in December, the Insurance Council of Australia (ICA) says.

The Lifetime Care and Support Scheme (LTCS) will manage an injured person’s treatment and care needs under the new scheme, which features provision of such benefits on a continued basis, for life if required.

Insurers are responsible for claimant medical and care costs for up to five years, then can commute the liability to the LTCS under the Motor Accident Injuries Bill.

“Insurers will therefore be working with the LTCS in a new and expanded capacity,” ICA CEO Rob Whelan says in a submission to the Standing Committee on Law and Justice’s first review of the LTCS.

“Clear processes and guidelines will be imperative to make this transfer as simple as possible.

“Without these, there is a risk that the transfer of liability to the LTCS could become a point of friction in the scheme.

“To avoid protracted negotiation and disputes, we suggest that an independent body determines the price of the liability.”