Insurance Costs Threat To Adventure Tourism
The Age
Monday July 30, 2001
East Gippsland independent MP Craig Ingram wants to help adventure tourism businesses, which face massive increases in public liability premiums, by urging the State Government to adopt a New Zealand accident insurance scheme.
He said insurance premiums for some operators in his electorate had increased by as much as 300 per cent to $10,000 in the past year. He will try to persuade Premier Steve Bracks to adopt the New Zealand Government's Accident Compensation Corporation, which provides cover for all personal injuries in New Zealand.
Under the system, cover is compulsory and the ability to sue for personal injury (other than exemplary damages) is removed. This not only helps tourism operators, small business and local councils with lower premiums, but cuts the number of bogus personal injury claims, he said.
``Due to the amount of claims, public liability insurance has gone through the roof and many people have found themselves having to go out of business due to the exorbitant insurance premiums."
Tim Lancaster, who runs a horse trail-riding business at Lakes Entrance, is one of many adventure tourism operators forced to raise prices to absorb the hike in premiums. ``My premium has gone up $7000 this year and I've never had a claim. It's crippling us ... I've had to put my prices up by between $5 and $10 an hour, which has hurt my business no end," he said.
He said something had to be done to stop the increasing number of people making bogus claims or Australia's adventure tourism industry would fold.
Victorian National Party leader Peter Ryan yesterday joined the call for action on public liability insurance, urging Mr Bracks to hold a forum on the issue. Claims from the insurance industry that premium increases were necessary because of an explosion in litigation were not supported by evidence, he said.
Mr Ingram will also lobby the Federal Government to look at the issue.
© 2001 The Age
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