XN000022-1978-03-17 — Page 4

FRIDAY, MARCH 17, 1978

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MOTOR VEHICLE (THIRD PARTY RISKS) (AMENDMENT) BILL

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A BILL, WHICH SETS OUT NEW ADMINISTRATIVE ARRANGEMENTS FOR THE GOVERNMENT TO RECOVER FROM INSURANCE COMPANIES THE COST OF HOSPITAL CARE FOR VICTIMS OF TRAFFIC ACCIDENTS, IS PUBLISHED TODAY IN THE GOVERNMENT GAZETTE.

THE PROPOSED ARRANGEMENTS ARE CONTAINED IN THE MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL 1978, WHICH WILL BE INTRODUCED IN THE LEGISLATIVE COUNCIL SHORTLY.

UNDER THE BILL, THE DIRECTOR OF MEDICAL AND HEALTH SERVICES, RATHER THAN THE HOSPITALS THEMSELVES, WILL BE RESPONSIBLE FOR COLLECTING FROM INSURANCE COMPANIES EXPENSES INVOLVED IN TREATING VICTIMS OF TRAFFIC ACCIDENTS WHO ARE IN-PATIENTS IN GOVERNMENT HOSPITALS.

IT IS ALSO PROPOSED THAT THE MAXIMUM LIABILITY OF INSURERS IN RESPECT OF IN-PATIENT HOSPITAL EXPENSES SHOULD BE $2,500. THIS LEVEL IS BASED APPROXIMATELY ON THE AVERAGE COST OF IN- PATIENT TREATMENT FOR A PERIOD OF 15 DAYS IN A GOVERNMENT HOSPITAL.

A SIMILAR PROCEDURE WILL APPLY IN GOVERNMENT SUBVENTED HOSPITALS, BUT THE COLLECTION OF EXPENSES WILL BE MADE THROUGH THEIR OWN HOSPITAL MANAGEMENT.

THE BILL EMPOWERS THE DIRECTOR TO WAIVE AT HIS DISCRETION RECOVERY OF THE COST OF OUT-PATIENT TREATMENT.

OR

A GOVERNMENT SPOKESMAN EXPLAINED THAT INSURANCE COMPANIES INSTITUTIONS CARRYING THEIR OWN THIRD PARTY RISKS ARE ALREADY REQUIRED BY THE EXISTING LAW TO PAY SUCH EXPENSES,

+ THE PRINCIPLE OF THIS PROVISION IS THAT SUCH EXPENSES SHOULD BE BORNE BY VEHICLE OWNERS THROUGH THE IR INSURERS, RATHER THAN BY TAXPAYERS AT LARGE THROUGH THE GENERAL REVENUE, HE SAID,

THE CURRENT MAXIMUM LIABILITY OF INSURANCE COMPANIES IN RESPECT OF HOSPITAL EXPENSES, BASED ON THE COST OF IN-PATIENT TREATMENT IN 1951 WHEN THE ORDINANCE WAS FIRST ENACTED, IS FIXED AT 400.

I ACTUAL PRACTICE HOWEVER, GOVERNMENT AND SUBVENTED HOSPITALS HAVE NOT RECOVERED THESE EXPENSES FROM INSURANCE COMPANIES IN THE PAST AS IT WAS THOUGHT THAT THE SUM THAT COULD BE RECOVERED DID NOT JUSTIFY THE COST OF THE ADMINISTRATIVE PROCEDURES WHICH UNDER THE BILL HAVE NOW BEEN STREAMLINED.

THE SPOKESMAN ADDED THAT THE ACCIDENT INSURANCE ASSOCIATION HAS BEEN CONSULTED ON AND HAS AGREED TO THE PROPOSED REVISION OF THE MAXIMUM LEVEL OF HOSPITAL EXPENSES TO BE PAID BY INSURANCE COMPANIES, WHICH IM REAL TERMS HAS NOT CHANGED SINCE 1951.

IF APPROVED BY THE LEGISLATIVE COUNCIL THE BILL WILL COME INTO EFFECT " AUGUST 1 THIS YEAR.

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