The Insurance Legislation Amendment (Motor Vehicle Claims Harvesting) Bill 2023, recently tabled in the Legislative Assembly of Western Australia, has sparked debate for potentially curtailing the compensation available to victims of motor vehicle accidents.
According to the Australian Lawyers Alliance (ALA), the proposed law introduces stringent measures that could elevate the burden on claimants, making it more challenging and expensive to seek rightful compensation.
Graham Droppert SC, former national president of the ALA, has criticised the bill for potentially rushing victims into settlements that do not fully cover their losses.
“The changes will force claimants to settle their accident claims sooner than they should, for less compensation than they should receive,” he said. “We support the state government’s commitment to eradicating predatory claims harvesting practices, but the current bill goes well beyond what is necessary and will result in injustice to those injured on the roads.
“Many of the provisions in the Bill have nothing to do with claims harvesting but will limit the rights of individuals to obtain proper compensation for their injuries.”
The ALA – which represents legal professionals dedicated to defending the rights of injured parties, including road accident victims – highlighted the severe consequences of motor vehicle accidents on individuals.
Droppert underscored the necessity for a compensation framework that guarantees just and equitable resolutions for those facing potentially lifelong injuries.
“Every day, we see the devastating impact of serious motor vehicle accidents,” he said. “We need to make sure our scheme continues to deliver fair and reasonable outcomes for people who sometimes have life-changing injuries.”
The organisation has called for a pause on the bill’s progression for further dialogue, noting a significant gap in consultation with the legal community, who are intimately familiar with the nuances of the compensation system and the potential fallout from the proposed changes.
The ALA’s long-standing campaign against claims harvesting has involved discussions with the Insurance Commission of Western Australia (ICWA), urging the government to outlaw these practices. However, the ALA contends that there has been no indication from ICWA of an intention to make it more difficult for legitimate claimants to secure adequate recompense for injuries caused by others’ negligence.
Droppert highlighted how the proposed legislation could put injured motorists at a disadvantage, compelling them to accept less than adequate compensation and facing the prospect of legal action against insurance entities without proper legal representation.
“In many cases, injured motorists will be battling without legal representation against a monopoly insurer with new rules that favour the insurer and make the process very difficult for the injured person,” he said. “One of the proposed changes compels the claimant to make an offer as early as six to eight months after notifying the insurer of the claim. In our experience, only the simplest and most minor of injuries have resolved at this stage. There is not even protection for children or those with very serious injuries who are still having intensive medical treatment.”
