Essay Database

Microeconomic policy issue A clear point has been made in the article that professional indemnity insurance premiums are raising dramatically. The Western Australia government is aiming at reducing insurance premiums by the introduction of proportionate liability. The WA government has influenced the outcome of insurance premiums policy made by the insurance companies to ensure that premiums are best and reasonable for these insurers. If the premiums were only controlled at the hands of these insurance …

…which are positive statement and normative statement. One example of positive statement is " In all claims where defendants are found to be at fault, they will be liable for only the proportion of harm they caused rather than be potentially liable for the plaintiff's entire loss." A normative statement can be demonstrated by "People who are found to be 10 percent negligent in relation to economic loss should only be responsible for 10 percent of the damage."