Victoria is a step closer to introducing injury law reforms after a second reading of the Wrongs Amendment Bill 2015 in the State Parliament last week.

“The bill seeks to ensure… personal injuries legislation operates clearly and consistently to the benefit of claimants who are injured by the negligence of others,” an explanatory memorandum says.

The reform – an amendment to the Wrongs Act 1958 – would change the way damages for economic loss are calculated.

It would also raise the maximum damages for non-economic loss from $371,380 to $577,050 and change the method by which the amount is indexed.

“The increase in the cap reflects… that there is no reason for differences in the maximum amount of damages that can be awarded to claimants for non-economic loss in the workplace injury and personal injury contexts,” the memorandum says.

The reform would also change the way psychiatric injury thresholds and spinal injuries are assessed for non-economic losses.

The draft proposal reduces the impairment threshold for access to damages for psychological injuries from “more than 10%” to “10% or more”.

“Changing the significant injury thresholds for psychiatric and spinal injuries… will allow some people with psychiatric and spinal injuries who are not currently entitled to recover damages for economic loss to claim for this loss,” the memorandum says.

Maurice Blackburn Lawyers has supported the reforms, which it says will offer improved protection for injured Victorians.

“It’s important to be looking after the rights of Victorians injured as a result of negligence,” Principal Dimitra Dubrow said.

The Insurance Council of Australia says the proposed reforms may affect premiums.

“A significant increase in the cap on non-economic loss could result in an increase in premiums,” GM Communications and Media Relations Campbell Fuller told insuranceNEWS.com.au.

“The reduction or lowering of impairment thresholds may result in more claims being lodged, which could have an impact on total claims cost for the sector.”