Catholic Church payouts to victims of pedophile priests don't recognise the harm they have suffered, a lawyer for the Melbourne archdiocese says.

Many victims have told the abuse royal commission they've received only "token amounts" in compensation under the church's Melbourne Response scheme for handling clergy sex abuse complaints.

Lawyer Richard Leder, who represents the Melbourne archdiocese, said it was clear now that the capped payouts set under the Melbourne Response don't recognise the harm suffered by victims.

"It is clear that for some victims the ability to receive only up to $75,000 in lump sum compensation indicates that the compensation component of the Melbourne Response is not achieving the objective that it was set out to achieve in terms of delivering a financial recognition of the harm.

"I'm absolutely supportive of the commitments that the archbishop has made to review those matters," Mr Leder told the royal commission on Wednesday.

Archbishop of Melbourne Denis Hart, who will give evidence before the commission, has promised to look at reviewing Melbourne Response payouts.

The scheme was set up in 1996 with a $50,000 cap on payouts, later increased to $75,000.

Victims have criticised the Melbourne Response's independent commissioner Peter O'Callaghan QC for discouraging them from going to police about their abuse.

Mr O'Callaghan said he had not sought to discourage people from going to the police.

"I have a complete anathema for clerical child sexual abuses," he said.

He said the two Melbourne Response independent commissioners welcomed people taking those "miscreants" to the court.

"I certainly have a desire that child abusers are brought to justice."

The commission heard an official at Catholic Church Insurance believed Mr O'Callaghan wasn't scrutinising victims enough and was relying on victims' accounts too much.

"There is no investigation other than the pitiful interviews conducted by the independent commissioner, which are seldom more than an account of the events as given by the claimant," Laurie Rolls, of the church's insurance body, said a letter presented to the commission.

"(The interviews are) accompanied by anecdotal irrelevances offered by the commissioner himself that are designed to support the story being told."

Mr O'Callaghan said the process of his investigations was not included in the reports sent to the Catholic Church.

"I think this is the first time I have ever seen (Mr Rolls' letter). I reject it," Mr O'Callaghan said.