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National product safety regime leaves liability rates unchanged

The Federal Government’s proposed national product safety regime is unlikely to affect product liability rates, says a leading insurer.

Allianz spokesman Nicholas Scofield says the changes to product safety laws will have little impact as they only affect a minimal range of products.

But he says Allianz welcomes harmonisation in principle. “It’s positive because any sort of national consistency for businesses operating across boundaries is going to oil the wheels of commerce.”

Assistant Treasurer Chris Bowen announced on Friday the creation of a “single, national product safety law and framework”, incorporating product bans, standards and recalls.

The Australian Competition and Consumer Commission will administer the new regime, along with state and territory offices of fair trading.

Mr Scofield says sector-specific regulatory regimes in areas such as electrical safety and motor standards, coupled with mandatory safety standards for goods such as car seats and cots, already ensure a degree of standardisation across Australia that aids insurers in setting rates and policy wording.