Church Accuses Insurers in Child Sex Investigation

By Trevor Treharne
Insurance Business
November 27, 2012

http://www.insurancebusinessonline.com.au/article/church-accuses-insurers-in-child-sex-investigation-146757.aspx

The Anglican Church has made the astonishing accusation that the royal commission into child sex abuse should be focusing on the actions of the insurers for inhibiting the Church from “acting as it would wish".

The Church claims some insurers refuse to allow religious organisations to settle financial compensation and instead insist on fighting victims in court.

The controversial submission, one of more than 300 contributions received by Attorney-General Nicola Roxon, argues that often the Diocese is "inhibited from acting as it would wish" by insurance companies that want to "litigate rather than settle".

In his statement to the government, the general manager of the Diocese of Brisbane, Peter Read, urges the commission to examine the "constraints insurers impose on institutional responses" to child sexual abuse.

"At times, the diocese is inhibited from acting as it would wish. From time to time, even when it is apparent that abuse has occurred, certain insurers have been hesitant to allow the diocese to apologise to survivors or to mediate a financial settlement in civil action," he says.

"Some insurers, with carriage of a matter under the terms of the insurance contract, have preferred to litigate rather than settle," added Read.