A tech firm has presented a case advocating for the establishment of a statutory public liability scheme. The firm, recognizing the challenges faced by many organizations in acquiring affordable and suitable public liability insurance coverage, suggests that Australia should consider implementing a statutory scheme similar to those already in place for compulsory third-party (CTP) and workers’ compensation insurance.
The firm’s proposal aims to address the difficulties organizations encounter in obtaining adequate public liability coverage and to ensure equitable outcomes for all parties involved. The suggestion takes into account the need to re-examine current legislation, considering that major tort reform in Australia has not occurred for over two decades.
The firm suggests that the complexities surrounding public liability create barriers for organizations, as only those with extensive knowledge and resources can navigate the system and fund themselves through the court processes.
Additionally, market fluctuations impact the availability of coverage, leaving gaps that potentially put organizations and the public at risk. While achieving consensus on a nationwide scheme may be challenging, the firm believes that if one state takes the lead and demonstrates the benefits of a statutory scheme, other states may be inclined to follow suit.
Implementing such a reform would require insurers to make substantial changes to their operating systems and IT infrastructure, but they have shown the ability to adapt to previous structural reforms.
Overall, the tech firm’s case for a statutory public liability scheme highlights the importance of ensuring fair and accessible coverage for all while mitigating risks associated with public liability.
Xceedance, a consulting and technology firm, proposes the introduction of a statutory public liability insurance scheme in Australia. This suggestion arises from the challenges faced by numerous organizations in obtaining affordable and appropriate coverage.
Prateek Vijayvergia, Business Leader – Key Accounts Australia, suggests that a debate should be held regarding the implementation of a scheme similar to those in place for compulsory third party (CTP) and workers’ compensation coverage.
Mr. Vijayvergia highlights the significance of re-evaluating the current legislation in Australia, as it has been over two decades since substantial tort reform took place. He suggests that it is an opportune time to assess the adequacy of the existing legislation and its alignment with the intended purpose.
Mr. Vijayvergia emphasizes that schemes like CTP and workers’ compensation have brought about tangible reform, aiding in the rehabilitation process and reducing adversarial legal battles. He contrasts this with the alternative scenario of relying on the judicial system to determine damages years after the incident, underscoring the advantages of implementing similar schemes.
According to Mr. Vijayvergia, the intricacies surrounding public liability pose a barrier to achieving fair outcomes. He highlights that navigating these complexities and funding oneself through court processes are tasks that only the well-informed and resourceful can undertake. Furthermore, the availability of coverage is also affected by market fluctuations.
Mr. Vijayvergia points out that insurers frequently enter and exit the public liability sector based on factors like market competition and shifts in market conditions. However, when insurers withdraw from this segment, it can lead to uncovered market gaps, potentially jeopardizing both organizations and the public.
While Mr. Vijayvergia acknowledges that reaching a consensus on a nationwide scheme is improbable, he suggests that if one state takes the initiative and demonstrates the advantages, it may inspire other states to follow suit.
Mr. Vijayvergia remarks that implementing any structural reform to public liability insurance would necessitate significant changes to insurers’ operating systems and IT infrastructure. Nevertheless, he points out that insurers have proven their ability to adapt to numerous structural reforms in the past.
Source : insurancenews.com.au