National Injury Insurance Scheme (Queensland) Bill 2016
Plain English Summary
Overview
This bill creates a no-fault insurance scheme that pays for lifetime treatment, care and support for people catastrophically injured in Queensland motor vehicle accidents, regardless of who caused the crash. It sets up a new agency and fund paid for by a levy on CTP insurance premiums, and applies to serious injuries suffered from 1 July 2016 onwards.
Who it affects
People with spinal cord injuries, severe brain injuries, major amputations, severe burns or blindness from Queensland car crashes gain guaranteed lifetime care, while motorists pay a new levy on their CTP premium and insurers lose liability for treatment costs.
Key changes
- People catastrophically injured in Queensland motor accidents get lifetime treatment, care and support regardless of fault, covering spinal cord, brain injuries, major amputations, severe burns, blindness and brachial plexus injuries
- A new National Injury Insurance Agency, Queensland is created to assess needs, approve services and make payments directly to providers or participants
- A new levy is added to CTP insurance premiums to fund the scheme, with insurers required to repay 'unearned' premiums collected from 1 July 2015
- Court-awarded damages for treatment, care and support are restricted while a person is in the scheme, but lifetime participants less than 25% at fault can opt out and take a lump sum instead
- Disputes are resolved through internal review by the agency, with medical questions decided by a medical tribunal and other matters by QCAT, with appeals to the courts
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee19 Apr 2016View Hansard
Referred to Finance and Administration Committee
The Education, Tourism, Innovation and Small Business Committee examined the bill after the referral was varied from the Finance and Administration Committee. The committee did not reach agreement on whether the bill should be passed, with the vote tied three to three. Government members supported the bill, while non-government members filed a statement of reservation citing concerns about cost of living impacts and the government's choice of a hybrid model over a lifetime care model.
Key findings (5)
- The bill was the first stage of implementing the National Injury Insurance Scheme in Queensland, covering only catastrophic injuries from motor vehicle accidents
- The committee vote on whether to recommend passage was tied three to three, meaning the motion failed
- Non-government members raised concerns about inconsistencies between Treasury evidence and the Treasurer's statements regarding cost impacts on families
- Frontline service providers, insurers, and academics broadly favoured a lifetime care model over the government's preferred hybrid model
- The committee identified that the explanatory notes did not comply with the requirements of the Legislative Standards Act 1992
Recommendations (2)
- The committee recommends a minor amendment to the definition of 'serious personal injury' in Schedule 1 of the Bill to insert the word 'of' in paragraph (g) so that it states 'a full thickness burn to all or part of the body'.
- The committee recommends that the Treasurer ensure that future Explanatory Notes accompanying Bills comply with the requirements of section 23 of the Legislative Standards Act 1992.
Committee report tabled
▸Second Reading26 May 2016View Hansard
▸15 members spoke8 support1 oppose6 mixed
As Treasurer, introduced and moved the bill establishing a no-fault scheme providing lifetime treatment, care and support for people catastrophically injured in motor vehicle accidents, defending the hybrid model as preserving common law rights and choice for participants.
“The introduction of the National Injury Insurance Scheme Queensland is one of the most significant reforms since the introduction of compulsory third-party insurance in Queensland in 1936.”— 2016-05-26View Hansard
As shadow Treasurer, stated LNP support for establishing an NIIS but strongly opposed the government's hybrid model, arguing option A (full lifetime care) was cheaper and supported by the vast majority of stakeholders, and flagged opposition amendments.
“The LNP supports the establishment of the National Injury Insurance Scheme, but we do not believe the government has adopted the most appropriate model.”— 2016-05-26View Hansard
As chair of the Education, Tourism, Innovation and Small Business Committee, supported the hybrid model as providing choice, dignity and long-term quality lifetime care and support at a cost difference of only $8 per year compared to the pure no-fault option.
“It is for the reason that this bill with the hybrid model will produce the best long-term lifetime care and support scheme that allows the individual to exercise their common law right as a choice that I commend the bill to the House.”— 2016-05-26View Hansard
As shadow minister for communities and disability services, supported establishing an NIIS but criticised the government's hybrid delivery model as too costly, rejected by stakeholders, and poorly costed, arguing option A was preferred.
“An NIIS is an important step forward in providing a new layer of protection for those involved in catastrophic accidents on our roads, [but] this asleep-at-the-wheel government just cannot get a delivery model right for an NIIS.”— 2016-05-26View Hansard
Supported the hybrid scheme as giving people choice to pursue common law compensation, citing personal family experience with a motor accident and rejecting claims that lump sums are commonly exhausted.
“I believe that the government's proposed hybrid scheme will cover people, which is why I support it 100 per cent.”— 2016-05-26View Hansard
Supported establishing an NIIS but opposed the hybrid model, arguing the lifetime care model adopted by all other jurisdictions (except Western Australia) was recommended by front-line service providers, insurers and academics.
“The LNP supports the establishment of a national injury insurance scheme in Queensland, and we have for a number of years ... we do not believe that the hybrid model proposed by the government is the most effective way in which to deliver this important reform.”— 2016-05-26View Hansard
Supported the hybrid model as preserving choice and existing legal rights while closing a coverage gap for no-fault catastrophic injuries, arguing 60 cents a week was a small cost for comprehensive lifetime support.
“A hybrid model is one that has the full support of government members because it seeks to level up coverage whilst protecting existing rights.”— 2016-05-26View Hansard
Supported the concept of the NIIS but strongly opposed the government's hybrid implementation as ignoring stakeholder advice, having unclear costings, and imposing over $30 million per year extra on Queensland families compared to the lifetime care model.
“Whilst supporting the concept of a National Injury Insurance Scheme, [I am] saying that quite clearly today the government have got it wrong when it comes to implementing the NIIS ... Whilst I support the NIIS, I absolutely condemn the government's model and the hybrid scheme.”— 2016-05-26View Hansard
Drawing on prior legal practice with both injured parties and CTP insurers, supported the hybrid model as protecting the vulnerable while allowing common law claims where fault can be proved, consistent with the workers compensation model.
“In my view, this hybrid model is quite clearly the best model.”— 2016-05-26View Hansard
Supported the establishment of an NIIS but criticised the government's handling of the bill, the costing inconsistencies and choice of the hybrid model over option A, which was preferred by insurance industry and community organisations.
“Without a doubt, this bill should be an important step forward for the people of Queensland. It must, however, be a cost-efficient and effective scheme.”— 2016-05-26View Hansard
Supported the hybrid model as levelling up coverage for no-fault accidents while protecting the common law rights and dignity of those who can prove fault, at a modest cost.
“The proposed model as put forward by the Queensland government achieves this balance, being a hybrid model that seeks to level up coverage whilst protecting rights.”— 2016-05-26View Hansard
Supported the concept of an NIIS but could not support the bill in its current form, citing the hybrid model being more expensive, inconsistencies in Treasury advice, and the rejection of option A that was preferred by 75 per cent of initial stakeholder views.
“While the establishment of the NIIS in Queensland is much needed reform, the Labor government has fallen short in the preparatory work that was required to confidently make the recommendation that the bill should be passed in its current form. For these reasons I cannot support the bill in its current form.”— 2016-05-26View Hansard
Drawing on experience caring for people with catastrophic injuries, supported the bill as providing certainty, dignity and choice to injured people and their families during rehabilitation.
“This bill provides certainty for people in the immediate aftermath of catastrophic injuries, and that is why I am supporting this bill.”— 2016-05-26View Hansard
Supported the establishment of an NIIS but criticised the government's choice of the more expensive hybrid option, arguing option A (lifetime care) at $16 per vehicle after savings would have been a far more affordable approach for struggling Queensland families.
“Option A is by far a cheaper option, but this government has decided to take the most expensive option—a further kick in the guts for families doing it tough.”— 2016-05-26View Hansard
As Minister for Disability Services, supported the bill as providing certainty and peace of mind that care and support will be available for every Queenslander with serious catastrophic injuries, complementing the NDIS.
“This bill is about providing certainty and peace of mind that care and support will be available for every Queenslander who has or might acquire a serious disability, and that is something that I am proud to support.”— 2016-05-26View Hansard
▸In Detail26 May 2016View Hansard
Government amendments to clauses 1 to 11 clarifying finalisation of claims and references to a participant's injury and motor accident.
Opposition amendment to clause 12 to make a person ineligible to participate in the scheme if they had received damages for treatment, care and support, reflecting the LNP's preferred pure no-fault (option A) model.
Government amendments to clauses 13 to 177 en bloc including raising the contributory negligence threshold for restricting common law damages from 25 per cent to 50 per cent and a range of drafting corrections.
That the amendments be agreed to
Government amendments moved by the Treasurer en bloc to a large range of clauses, including changing the contributory negligence threshold from 25 per cent to 50 per cent, agreed with ALP/KAP/Independent support against LNP opposition.
The motion passed.
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Ayes (45)
Noes (40)
Government amendments to Schedule 1 (Dictionary) making minor drafting corrections.
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