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(From AAP News)
SYDNEY, Oct 2 AAP - Injury victims claiming compensation for mental anguish will only succeed if they have recognised mental illnesses under proposed changes to public liability insurance, Assistant Treasurer Helen Coonan said today. The proposal was among 34 recommendations made by a panel headed by Justice David Ipp which is reviewing the law of negligence. Senator Coonan and state counterparts were discussing the panel's final report at an insurance summit at Sydney's ANA Hotel today. Proposals also include capping damages for pain and suffering at $250,000, regulating lawyers' fees and making it more difficult to sue for negligence. Changes to mental harm provisions were designed to ensure that only recognised mental illnesses were compensated, Senator Coonan said. "But we know from experience there are a lot of cases where people really can get back to work," she said in Sydney. "They might have had a very minor injury, they can recover and have recovered all their physical injuries, yet they remained depressed and anxious. "That's the kind of mental disability that we think shouldn't be compensated. People shouldn't be out of the workforce forever just ...