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Legislative Assembly for the ACT: 2002 Week 9 Hansard (21 August) . . Page.. 2499 ..

MR SMYTH (continuing):

This bill comprehensively addresses those drivers. This bill will move the process away from the "pot of gold mentality" to one of structured settlements and rehabilitation. It will provide similar structured settlements of rehabilitation obligations to the Workers Compensation Act-reformed by the Liberal government last year-and use a similar system of a table of maims for payments for permanent injury.

The experience with workers compensation is that it is far cheaper and attractive for insurers to accept a claim without necessarily admitting negligence, which follows the no-fault provisions of this bill, than it is to take their chances under common law.

Under the proposed system, it will be possible to go on to common law only if a claim is rejected by the insurer-whereafter it will be subject to a shonk test and extensive mediation and conciliation, before going to court.

Other elements of the bill address issues of timing. Timing is the other major driver of premium costs, after volatility of payouts. The longer it takes for a claim to be assessed, the bigger the payout. Similarly, the longer the space of time between injury and claim, the bigger the payout.

The Insurance Compensation Framework Bill will introduce a statute of limitation on claims-three years for adults and six years for minors-from the time the injury becomes apparent. Currently, there is no such limit. The Insurance Compensation Framework Bill will also force insurers to assess claims within 28 days of receiving them.

The bill will also offer weekly compensation. The bill will force insurers to pay weekly compensation to injured parties while the claim is being assessed and settled-to cover wages lost while the injured person is recovering. The bill will also offer an injury management regime. The bill imposes obligations, on both the injured party and the insurer, to enter into an injury management program. Entry into an injury management program is not an admission of liability-nor is the payment of weekly compensation.

It may interest members to know that one of the few companies in Australia to experience a reduction in their public liability premiums is Westfield. That is because they have implemented an injury management process for their claimants.

Insurance data collection is important. The bill will require insurers to provide information on claims to the minister. The minister will be required to maintain records of this information. Hopefully, that information will be used to target those industries with higher claims histories or risk management programs.

Under this bill, people who contribute to their injury, through wilful misconduct, deliberate self-harm, or the misuse of drugs and alcohol, will not be entitled to compensation.

Under this bill, all the medical costs of the injured party will be met by the insurer. There will be no need for the injured party to undertake litigation to pay for their medical bills, and payment for death is covered. This bill sets out a statutory payment for death as $150,000, CPI indexed. This is the same as the provision in the Workers Compensation Act.

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