A parliamentary question probes whether the WA government's public liability insurance reforms, specifically a $12,000 deductible, were a result of blackmail by the insurance industry. The response denies awareness of the Premier's blackmail claim and defends the reforms as addressing WA-specific issues.

AnsweredQoN 306Legislative Council
Asked
5 November 2002
Portfolio
Leader of the House representing the Premier

QuestionView source ↗

The Premier is on record as saying that he is being blackmailed by the insurance industry. (1) Can he explain how the likes of Ian Brown of SGIO, NRMA and IAG can blackmail the majesty of the Premier? (2) Is the Government’s decision to legislate for the $12 000 deductible threshold on public liability claims evidence that the Government has in fact succumbed to the insurance industry blackmail? Hon KIM CHANCE

AnswerView source ↗

I was unaware, although I was not asked the question, that the Premier had said that. Hon John Fischer interjected. Hon KIM CHANCE: I am not saying he did not say it; I am just saying I was not aware of it. (1)-(2) As the Premier is reported to have said on 17 September 2002 in the Legislative Assembly, he had met with the Insurance Council of Australia in early August and it had indicated to him that this Government’s reform package would positively assist in offering more affordable public liability insurance cover. However, a consortium of insurance companies stated on 30 August 2002 that they would be prepared to extend insurance to a not-for-profit insurance pool in Western Australia only if our reforms matched those passed by New South Wales. Naturally, it is in the interests of insurance companies to lobby government to introduce more restrictive tort law reform. However, this Government has introduced legislation that will address problems specific to Western Australia. It will create a conducive and predictable environment in which insurance companies can operate. The decision to introduce a $12 000 deductible threshold on the general damages component of public liability insurance claims resulted from consideration of the review of the law of negligence, and existing legislation, namely the Motor Vehicle (Third Party Insurance) Act 1943, which provided evidence that a threshold for minor and temporary injuries alleviates the cost of claims.
(1) Can he explain how the likes of Ian Brown of SGIO, NRMA and IAG can blackmail the majesty of the Premier? (2) Is the Government’s decision to legislate for the $12 000 deductible threshold on public liability claims evidence that the Government has in fact succumbed to the insurance industry blackmail? Hon KIM CHANCE replied : I was unaware, although I was not asked the question, that the Premier had said that. Hon John Fischer interjected. Hon KIM CHANCE: I am not saying he did not say it; I am just saying I was not aware of it. (1)-(2) As the Premier is reported to have said on 17 September 2002 in the Legislative Assembly, he had met with the Insurance Council of Australia in early August and it had indicated to him that this Government’s reform package would positively assist in offering more affordable public liability insurance cover. However, a consortium of insurance companies stated on 30 August 2002 that they would be prepared to extend insurance to a not-for-profit insurance pool in Western Australia only if our reforms matched those passed by New South Wales. Naturally, it is in the interests of insurance companies to lobby government to introduce more restrictive tort law reform. However, this Government has introduced legislation that will address problems specific to Western Australia. It will create a conducive and predictable environment in which insurance companies can operate. The decision to introduce a $12 000 deductible threshold on the general damages component of public liability insurance claims resulted from consideration of the review of the law of negligence, and existing legislation, namely the Motor Vehicle (Third Party Insurance) Act 1943, which provided evidence that a threshold for minor and temporary injuries alleviates the cost of claims.
(2) Is the Government’s decision to legislate for the $12 000 deductible threshold on public liability claims evidence that the Government has in fact succumbed to the insurance industry blackmail? Hon KIM CHANCE replied : I was unaware, although I was not asked the question, that the Premier had said that. Hon John Fischer interjected. Hon KIM CHANCE: I am not saying he did not say it; I am just saying I was not aware of it. (1)-(2) As the Premier is reported to have said on 17 September 2002 in the Legislative Assembly, he had met with the Insurance Council of Australia in early August and it had indicated to him that this Government’s reform package would positively assist in offering more affordable public liability insurance cover. However, a consortium of insurance companies stated on 30 August 2002 that they would be prepared to extend insurance to a not-for-profit insurance pool in Western Australia only if our reforms matched those passed by New South Wales. Naturally, it is in the interests of insurance companies to lobby government to introduce more restrictive tort law reform. However, this Government has introduced legislation that will address problems specific to Western Australia. It will create a conducive and predictable environment in which insurance companies can operate. The decision to introduce a $12 000 deductible threshold on the general damages component of public liability insurance claims resulted from consideration of the review of the law of negligence, and existing legislation, namely the Motor Vehicle (Third Party Insurance) Act 1943, which provided evidence that a threshold for minor and temporary injuries alleviates the cost of claims.
Hon KIM CHANCE replied : I was unaware, although I was not asked the question, that the Premier had said that. Hon John Fischer interjected. Hon KIM CHANCE: I am not saying he did not say it; I am just saying I was not aware of it. (1)-(2) As the Premier is reported to have said on 17 September 2002 in the Legislative Assembly, he had met with the Insurance Council of Australia in early August and it had indicated to him that this Government’s reform package would positively assist in offering more affordable public liability insurance cover. However, a consortium of insurance companies stated on 30 August 2002 that they would be prepared to extend insurance to a not-for-profit insurance pool in Western Australia only if our reforms matched those passed by New South Wales. Naturally, it is in the interests of insurance companies to lobby government to introduce more restrictive tort law reform. However, this Government has introduced legislation that will address problems specific to Western Australia. It will create a conducive and predictable environment in which insurance companies can operate. The decision to introduce a $12 000 deductible threshold on the general damages component of public liability insurance claims resulted from consideration of the review of the law of negligence, and existing legislation, namely the Motor Vehicle (Third Party Insurance) Act 1943, which provided evidence that a threshold for minor and temporary injuries alleviates the cost of claims.
I was unaware, although I was not asked the question, that the Premier had said that. Hon John Fischer interjected. Hon KIM CHANCE: I am not saying he did not say it; I am just saying I was not aware of it. (1)-(2) As the Premier is reported to have said on 17 September 2002 in the Legislative Assembly, he had met with the Insurance Council of Australia in early August and it had indicated to him that this Government’s reform package would positively assist in offering more affordable public liability insurance cover. However, a consortium of insurance companies stated on 30 August 2002 that they would be prepared to extend insurance to a not-for-profit insurance pool in Western Australia only if our reforms matched those passed by New South Wales. Naturally, it is in the interests of insurance companies to lobby government to introduce more restrictive tort law reform. However, this Government has introduced legislation that will address problems specific to Western Australia. It will create a conducive and predictable environment in which insurance companies can operate. The decision to introduce a $12 000 deductible threshold on the general damages component of public liability insurance claims resulted from consideration of the review of the law of negligence, and existing legislation, namely the Motor Vehicle (Third Party Insurance) Act 1943, which provided evidence that a threshold for minor and temporary injuries alleviates the cost of claims.
Hon John Fischer interjected. Hon KIM CHANCE: I am not saying he did not say it; I am just saying I was not aware of it. (1)-(2) As the Premier is reported to have said on 17 September 2002 in the Legislative Assembly, he had met with the Insurance Council of Australia in early August and it had indicated to him that this Government’s reform package would positively assist in offering more affordable public liability insurance cover. However, a consortium of insurance companies stated on 30 August 2002 that they would be prepared to extend insurance to a not-for-profit insurance pool in Western Australia only if our reforms matched those passed by New South Wales. Naturally, it is in the interests of insurance companies to lobby government to introduce more restrictive tort law reform. However, this Government has introduced legislation that will address problems specific to Western Australia. It will create a conducive and predictable environment in which insurance companies can operate. The decision to introduce a $12 000 deductible threshold on the general damages component of public liability insurance claims resulted from consideration of the review of the law of negligence, and existing legislation, namely the Motor Vehicle (Third Party Insurance) Act 1943, which provided evidence that a threshold for minor and temporary injuries alleviates the cost of claims.
Hon KIM CHANCE: I am not saying he did not say it; I am just saying I was not aware of it. (1)-(2) As the Premier is reported to have said on 17 September 2002 in the Legislative Assembly, he had met with the Insurance Council of Australia in early August and it had indicated to him that this Government’s reform package would positively assist in offering more affordable public liability insurance cover. However, a consortium of insurance companies stated on 30 August 2002 that they would be prepared to extend insurance to a not-for-profit insurance pool in Western Australia only if our reforms matched those passed by New South Wales. Naturally, it is in the interests of insurance companies to lobby government to introduce more restrictive tort law reform. However, this Government has introduced legislation that will address problems specific to Western Australia. It will create a conducive and predictable environment in which insurance companies can operate. The decision to introduce a $12 000 deductible threshold on the general damages component of public liability insurance claims resulted from consideration of the review of the law of negligence, and existing legislation, namely the Motor Vehicle (Third Party Insurance) Act 1943, which provided evidence that a threshold for minor and temporary injuries alleviates the cost of claims.
(1)-(2) As the Premier is reported to have said on 17 September 2002 in the Legislative Assembly, he had met with the Insurance Council of Australia in early August and it had indicated to him that this Government’s reform package would positively assist in offering more affordable public liability insurance cover. However, a consortium of insurance companies stated on 30 August 2002 that they would be prepared to extend insurance to a not-for-profit insurance pool in Western Australia only if our reforms matched those passed by New South Wales. Naturally, it is in the interests of insurance companies to lobby government to introduce more restrictive tort law reform. However, this Government has introduced legislation that will address problems specific to Western Australia. It will create a conducive and predictable environment in which insurance companies can operate. The decision to introduce a $12 000 deductible threshold on the general damages component of public liability insurance claims resulted from consideration of the review of the law of negligence, and existing legislation, namely the Motor Vehicle (Third Party Insurance) Act 1943, which provided evidence that a threshold for minor and temporary injuries alleviates the cost of claims.
The decision to introduce a $12 000 deductible threshold on the general damages component of public liability insurance claims resulted from consideration of the review of the law of negligence, and existing legislation, namely the Motor Vehicle (Third Party Insurance) Act 1943, which provided evidence that a threshold for minor and temporary injuries alleviates the cost of claims.

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