Paediatrician and Labor MP Mike Freelander has called out overdiagnosis of mental health problems as the reason for an unsustainable surge in life insurance and workers’ compensation claims at the same time as the insurance regulator has warned it is closely monitoring the prudential risks posed by ballooning payouts.
Freelander, who is expected to be reinstalled as chairman of a parliamentary health committee during the Albanese government’s second term, said too many claims lacked an evidence-base, which meant many people were being over-compensated.