A tech firm is advocating for the implementation of a statutory public liability scheme. The firm believes that many organizations face challenges in obtaining affordable and suitable public liability insurance coverage. They suggest that introducing a statutory scheme, similar to those in place for compulsory third party (CTP) and workers’ compensation cover, should be considered.
The aim is to address the difficulties faced by businesses and promote equitable outcomes in terms of liability insurance. The firm emphasizes the need to re-evaluate the current legislation and its effectiveness in providing appropriate coverage.
They also highlight the success of existing schemes, such as CTP and workers’ compensation, in facilitating rehabilitation and reducing adversarial litigation.
The complexities surrounding public liability and the impact of market changes on coverage availability are additional factors that the firm believes need to be addressed. While achieving nationwide consensus on the issue may be challenging, they suggest that if one state takes the lead in implementing the scheme and demonstrates its benefits, others may be motivated to follow suit.
Xceedance, a consulting and technology firm, has proposed the introduction of a statutory scheme for public liability insurance in Australia. The recommendation comes in response to the challenges encountered by numerous organizations in obtaining affordable and appropriate coverage.
Prateek Vijayvergia, Business Leader – Key Accounts Australia, suggests initiating a discussion on implementing a scheme comparable to those currently in place for compulsory third party (CTP) and workers’ compensation coverage.
Mr. Vijayvergia highlights the importance of re-evaluating the current legislation and its suitability, as over two decades have elapsed since significant tort reform was implemented in Australia.
Mr. Vijayvergia explains that the CTP and workers’ compensation schemes have brought significant reforms by promoting rehabilitation and reducing adversarial legal processes. He contrasts this with the alternative scenario of relying on the judicial system to determine damages long after an incident has occurred.
According to Mr. Vijayvergia, the complexities surrounding public liability pose a barrier to achieving fair outcomes. He emphasizes that only those with advanced knowledge can navigate these complexities and must bear the financial burden of court proceedings, while changes in the market impact the availability of suitable coverage.
Mr. Vijayvergia explains, “Insurers enter and exit the public liability sector based on factors like competition and market trends. However, when they withdraw, it exposes gaps in the market, potentially putting organizations and the public at risk.”
While Mr. Vijayvergia believes that achieving consensus on a nationwide scheme is unlikely, he suggests that if one state takes the initiative and demonstrates the benefits, others may be encouraged to follow suit.
He points out, “Insurers would face significant changes to their operating systems and IT if structural reforms were implemented in public liability insurance. However, they have shown an ability to adapt to various structural reforms in the past.”
Source : insurancenews.com.au