The Victorian Managed Insurance Authority (VMIA) will review a policy stance that would deny cover for redress payments made to victims of institutional child sexual abuse under a new national program.

The national scheme, involving federal and state governments and non-government organisations, is to start in July, providing individual payments of up to $150,000. Legislation is before Federal Parliament.

The VMIA, whose clients include the Victorian Government and community organisations, says while its policies do not cover redress payments, it “will review its position…when the Commonwealth legislation is finalised”.

The insurer came under fire from media and community groups last week after declaring it would not cover redress payments for sex abuse victims. Such a decision would see the Victorian Government having to fund up to $400 million in payments over the next 10 years.

Deb Tsorbaris, the CEO of the Centre for Excellence in Child and Family Welfare, Victoria’s peak representative body for the sector, says the Victorian Government “needs to remove the uncertainty”.

“Our members want clarity over what these changes mean for their VMIA insurance and potential payments under the redress scheme,” she told insuranceNEWS.com.au.