A Review of Public Liability and Professional Indemnity Insurance

22 October 2002

View the report as a single document - (PDF 1134KB)

View the report as separate downloadable parts:


Members of the Committee	(PDF 78KB)

Terms of Reference	(PDF 97KB)

Abbreviations	(PDF 75KB)

Summary and recommendations	(PDF 150KB)

Introduction	(PDF 129KB)
Establishment of the inquiry Conduct of the inquiry Complementary reviews Structure of the report Acknowledgments

Chapter 1	(PDF 187KB)
The problems of insurance buyers Effects on community groups Effects on small business Effects on professions Individual stories versus wider statistics Market failure? Are some insurance buyers being unfairly penalised?

Chapter 2	(PDF 163KB)
Causes: insurance market issues Global influences The hardening insurance market Other issues New prudential standards Taxes and stamp duty Comment

Chapter 3	(PDF 210KB)
The number of claims Evidence on the increase in the number of claims Main underlying causes of the rise in the number of claims General change in attitude toward litigation Incentives to litigate Legal advertising including ‘no win no fee’ arrangements Lack of penalties for pursuing unmeritorious claims Small claims Anticipation/expectation that the insurer will settle The shift in defining negligence Steps taken by governments to address increases in public liability insurance premiums Joint and several liability versus proportionate liability Waiver and disclaimer legislation Amendment to statutes of limitations Landholder protection legislation Immunity from claims of negligence for volunteer and not-for-profit organisations and their workers

Chapter 4	(PDF 189KB)
The cost of claims The amount of damages awarded General damages On-going care and rehabilitation Structured settlements Administrative costs in relation to claims Insurance companies The insured Legal and court costs Risk management Professional Standards legislation Pooling

Chapter 5	(PDF 152KB)
Understanding the insurance market Introduction The quality of available data Central database Responsibility for the database New data collection system Court data

Chapter 6	(PDF 245KB)
Insurance consumers’ interests Introduction Assessment of premiums Unfair advantage A captive market and consumer concerns Current reviews—the ACCC and the Productivity Commission Market integrity, consumer protection and the regulators APRA Medical defence organisations (MDOs) ACCC ASIC Statutory dispute resolution procedures General Insurance Code of Practice Insurance Ombudsman

Supplementary report by Australian Democrats	(PDF 265KB)
Causes, effects and possible solutions regarding public liability insurance and professional indemnity

Appendix 1 - List of submissions	(PDF 110KB)

Appendix 2 - Public hearings and witnesses	(PDF 107KB)

Appendix 3 - Additional information	(PDF 107KB)

Appendix 4 - Examples of premium increases	(PDF 250KB)

Appendix 5 - Commonwealth, state and territory Legislative initiatives as at 30 September 2002	(PDF 143KB)
Commonwealth New South Wales Victoria Queensland South Australia Western Australia Tasmania Australian Capital Territory Northern Territory

Appendix 6 - Suggestions for a liability insurance database	(PDF 109KB)

Appendix 7 - Extract from additional information provided by ASIC	(PDF 115KB)

For further information, contact:

Committee Secretary
Senate Standing Committees on Economics
PO Box 6100
Parliament House
Canberra ACT 2600
Australia

Phone: +61 2 6277 3540

Fax: +61 2 6277 5719

Email: economics.sen@aph.gov.au

Phone:	+61 2 6277 3540
Fax:	+61 2 6277 5719
Email:	economics.sen@aph.gov.au