Law firm Maurice Blackburn has criticised the Victorian Managed Insurance Authority (VMIA) for its refusal to cover redress payments for victims of institutional child sexual abuse.

A national scheme, due to start on July 1, provides for maximum payments of $150,000 and has support from the Victorian Government.

But public insurer VMIA, whose clients include the State Government and community service organisations, says its policies will not cover redress scheme payments.

“Redress serves to acknowledge harm rather than meet a legal liability to compensate for damages,” it says on its website.

The Royal Commission into Institutional Responses to Child Sexual Abuse recommended redress payments capped at $200,000.

Maurice Blackburn Abuse Law Principal Michelle James says all insurers, whether public or private, should meet obligations to abuse survivors.

“The VMIA must be held to account for this decision,” Ms James said.

“Taking such a narrow interpretation of its obligation to make redress payments to survivors is completely unacceptable.”