Ms Jann McFarlane asked the Minister representing the Minister for Revenue and Assistant Treasurer, upon notice, on 16 May 2002:

(1) What measures is the Commonwealth taking to address the current crisis in public liability insurance for community and sporting groups.

(2) What are the timeframes for implementation of Commonwealth measures.

(3) Do these measures provide any guarantee that public liability premiums will reduce in price.

(4) Under the proposed Commonwealth Government measures are there any direct controls over insurance companies to take into account an organisation's claims history and risk management strategies.

(5) Will the Government take direct measures to combat the problem by setting up a uniform national insurance scheme; if not, why not.

(6) Will the Government take direct measures to set minimum standards for insurance claims through the introduction of an Insurance Claims Act; if not, why not.

(7) Will the Government amend the Insurance Contracts Act to require insurance companies to charge premiums that take into account an organisations risk management strategies and claims history; if not, why not.

(8) Will the Government restore the power in the Insurance Contracts Act which allowed a representative on behalf of members of the public to take legal action against insurance companies that ignored risk assessment strategies and claims histories on the grounds that they breached the duty of good faith, if not, why not.

Mr Costello (Treasurer) —The Minister for Revenue and Assistant Treasurer has provided the following answer to the honourable member's question.

(1) The joint communique from the Ministerial meeting on public liability insurance on 4 April 2003 provides information on Commonwealth measures to address these issues. The Review of the Law of Negligence reported on 2 October 2002. A copy of the report can be found at http://revofneg. treasury.gov.au.

(2) Details are outlined in the documents referred to in response to question one.

(3) The Government expects insurers to respond appropriately to ensure that the benefits generated from the reforms enacted by the Commonwealth, State and Territory governments are passed on to consumers.

The Government has asked the Australian Competition and Consumer Commission to update its Insurance Industry Market Pricing Review on a six monthly basis. Two more updates are expected.

(4) No.

(5) The Government is not attracted to the option of a national insurance scheme. The Government's approach is to work with the States and Territories and other stakeholders to identify the factors driving up premiums and to address these with a comprehensive package of reforms.

(6) The Commonwealth, States and Territories have agreed to explore, for their respective jurisdictions, ways to improve procedures to encourage resolution of claims without resort to litigation.

The Productivity Commission released its benchmarking report on Australian insurers' claims management practices against world standards on 23 January 2003. The Commission concluded that competition in the public liability insurance sector is sufficient to ensure efficient and cost-effective claims management practices in Australia.

(7) No. The level of premiums charged for particular insurance policies and the basis on which those premiums are set are commercial decisions for individual insurers.

(8) The Government is not aware of a former provision that would provide private representatives with the rights referred to in the member's question. However, in section 55A of the Act, the Australian Securities and Investments Commission is provided with the power to take representative actions on behalf of an insured in certain circumstances.