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Wednesday, 5 October 1983
Page: 1408

Question No. 301

Mr Jacobi asked the Minister representing the Minister for Social Security, upon notice, on 23 August 1983:

Will the Minister bring up to date the information provided in answer to my Question No. 2706 (Hansard, 18 November 1981, page 3097) about (a) financial aspects of the proposed National Rehabilitation and Compensation Scheme, (b) discussions on the scheme with the State governments and the insurance industry and (c) increases in premiums for workers' compensation and compulsory third party insurance.

Dr Blewett —The Minister for Social Security has provided the following answer to the honourable member's question:

(a) On the basis of figures provided in the Office of the Insurance Commissioner's publication ''Selected Statistics on the General Insurance Industry for the year ended 30 June 1982'', the updated figures for 1981-82 are:


compensation Compul-

third party sory

$m $m Direct premiums 1,262.5 917.3 Benefits (including legal, hospital and medical costs) 907.2 716.9 Administration expenses and commission 165.1 31.2

Separate figures for legal and hospital and medical costs are not published and must be estimated. If the ratios implicit in the reports of the Working Parties of the National Rehabilitation and Compensation Scheme are applied to the actual amounts paid in benefits in 1981-82, the figures for legal and hospital and medical costs would have been:


compensation Compul-

third party sory

$m $m Legal (excluding solicitor/client costs) 82.6 119.7 Hospital and medical 165.1 104.7

(b) The Government is committed to the progressive establishment of a national no-fault accident compensation scheme in co-operation with State Governments, commencing with injuries and deaths arising from road traffic accidents. The road traffic accident scheme contained in the recent NSW Law Reform Commission's Working Paper ''A Transport Accidents Scheme for New South Wales'' is to provide a broad model for discussion purposes. Some preliminary discussions between the Attorney-General and some State Labor Attorney-General and Shadow Attorney- General have already taken place.

(c) Using the same basis as in the answers to Questions No. 1748 (Hansard, 20 October 1977, pages 2301-2), 6053 (Hansard, 22 May 1980, pages 3170-1) and 2706 (Hansard, 18 November 1981, page 3097), the percentage increases in premiums between 1974-75 and 1981-82 were:

Direct Earned

premiums premiums

% % Worker's compensation 119.4 120.5 Compulsory third party 199.4 271.6