16/01/2026

Lawyers who represent injured Canberrans are concerned about the Government response released this week to the report from the ACT’s Standing Committee on Economics, Industry and Recreation into Insurance Costs in the ACT.

The Government says it will consider and assess whether capping personal injury claims is likely to reduce insurance premiums in the Territory. They will also consider whether the provisions for ‘journey claims’ (that being, accidents that occur during travel between home and work for many private sector employees) should be amended.

“Compensation caps have the potential to erode the rights of injured Canberrans and reduce the financial support they receive when they most need it,” said Amber Wang, ACT Director, Australian Lawyers Alliance (ALA).

“We are pleased the Government says that, before it commits to any future reforms, proper stakeholder consultation will occur having regard to social, health and economic impacts on injured people.

“We look forward to being part of that consultation process, as we are uniquely placed to speak collectively about our clients’ experiences and can explain how eroding compensation rights would cause them significant harm.”

The purpose of the common law is to return an injured person to the situation in life that they were in before their injury, as much as possible. The common law acts as an incentive to create safer workplaces and communities.

“To penalise an injured person by arbitrarily limiting the compensation they receive is unfair,” said Amber. “When someone has been injured through no fault of their own, we must prioritise supporting their recovery and restoring their quality of life as best we can.”

The Government also says it will consider whether a statutory cap on legal fees would reduce insurance premiums. “Is it proposed that insurers’ lawyers will have their fees capped, or only lawyers representing injured Canberrans?” asks Amber.

“The potential for a power imbalance between a well-resourced insurer and an injured person struggling to secure legal representation is obvious.”

This inequality is already playing out in the ACAT in relation to motor accident claims; an issue which the ALA has raised with Government multiple times. In Queensland, it has recently been reported that self-represented injured road users received seven and a half times less compensation than those who retained solicitors.

The Government also says it will review proportional liability arrangements under the Civil Law (Wrongs) Act 2002. If proportional liability is introduced, it too has the potential to mean an injured person misses out on the financial support they deserve.

“All of these areas of concern, if implemented, place Canberrans at risk of having their human rights eroded,” said Amber. “The ACT is a model jurisdiction which proudly respects human rights, and the ALA urges the Government not to dilute that reputation.”

The ALA is a not-for-profit member organisation made up of legal professionals many of whom represent injured people.