A tech firm is actively promoting the implementation of a statutory public liability scheme. This scheme would involve the establishment of a government-mandated system that ensures organizations have appropriate and affordable coverage for public liability risks.
The firm argues that many organizations face difficulties in obtaining suitable and cost-effective public liability insurance, and a statutory scheme could help address these challenges.
They propose that such a scheme should be debated and considered, similar to existing schemes for compulsory third-party (CTP) and workers’ compensation coverage. By advocating for a statutory public liability scheme, the tech firm aims to provide a more equitable and accessible solution for organizations in managing public liability risks.
Xceedance, a consulting and technology firm, proposes the introduction of a statutory scheme for public liability insurance in Australia. This recommendation comes in response to the challenges faced by numerous organizations in obtaining affordable and appropriate coverage.
Prateek Vijayvergia, Business Leader – Key Accounts Australia, suggests initiating a debate on implementing a scheme similar to those existing for compulsory third-party (CTP) and workers’ compensation coverage.
Mr. Vijayvergia highlights the timeliness of re-evaluating current legislation and assessing its suitability for the present context, considering that more than two decades have elapsed since the last significant tort reform in Australia.
Mr. Vijayvergia emphasizes the positive impact of CTP and workers’ compensation schemes, which have facilitated effective rehabilitation and reduced adversarial litigation. In contrast, relying solely on the judicial system to determine damages years after an incident poses a contrasting possibility.
According to Mr. Vijayvergia, the complexities associated with public liability create barriers to achieving fair outcomes. He argues that only those with sufficient expertise can navigate through these complexities and bear the financial burden of court processes, leading to potential inequities. Additionally, changes in the market impact the availability of suitable coverage.
Mr. Vijayvergia notes that insurers frequently enter and exit the public liability class, influenced by factors such as market competition and fluctuations. However, this dynamic creates gaps in the market, leaving organizations and the public vulnerable to potential risks.
Mr. Vijayvergia suggests that reaching a consensus on a nationwide scheme is unlikely. However, he proposes that if one state takes the initiative and demonstrates the benefits, other states may be inclined to follow suit.
According to Mr. Vijayvergia, implementing structural reforms to public liability insurance would require significant changes to insurers’ operating systems and IT infrastructure. However, he believes that insurers have shown adaptability in responding to previous structural reforms.
Source : insurancenews.com.au