State Parliament today passed new professional indemnity insurance laws for Queensland professionals such as architects, engineers and accountants.

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Attorney-General & Justice, Rod Welford
just...@cabinet.qld.gov.au
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02/09/04

Attorney General and Minister for Justice, Rod Welford, said the Professional Standards Act 2004 would enable professionals to limit damages payouts in return for more accountable standards of performance.

"These reforms will provide the dual benefit of assisting professionals to access cheaper insurance, while providing greater certainty for consumers about the quality of professional services," Mr Welford said.

"Over the past few years, many professionals have been hit hard by insurance costs, increasing fees to consumers to cover higher premiums, or practising without cover.

"None of these situations is good for our community and these reforms, which are being put into effect across Australia, will change the landscape.

"Professional groups will be able to set up schemes limiting their members' exposure to damages to an agreed amount not less than $500,000, in return for higher standards.

"Participating professionals must implement risk management strategies and may be required to adhere to a code of conduct, be part of a complaints and discipline procedure, undertake ongoing professional education, and become quality assured."

Mr Welford said that under the legislation, professionals could limit their liability for all property damage or pure economic loss.

"However, there can be no limit on liability where there is personal injury involved, or where there is fraud, dishonesty of a breach of trust," he said.

"In addition, a lawyer who is negligent when acting for someone who suffers personal injury will not be able to limit their liability.

"Where members participate in a scheme that limits their liability, it will be mandatory for them to hold an insurance policy or assets equivalent to an amount equal to the limit of that liability. "

An independent Professional Standards Council will be established to consider and approve all schemes put forward by professional organisations.

Media contact:
Greg Milne on 32393478 or 0417 791 336