Abstract:
The Productivity Commission report ‘Disability Care and Support’ recommends tort liability be replaced by a compulsory, government-run, no-fault scheme. But theory and evidence indicate moving to a no-fault scheme will increase the accident rate. Even a move from non-risk-rated third-party insurance to non-risk-rated first-party insurance reduces incentives for care. A no-fault scheme is not superior to current policies; genuine reform will need to be informed by law and economics literature.
Harrison, Mark D., Evidence-Free Policy: The Case of the National Injury Insurance Scheme (July 7, 2013). Agenda, Volume 20, Number 1, 2013 pp.55-69.
First posted 2014-01-27 07:05:31
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