Minister Barr: Government drives lower CTP premiums for CBR drivers
- Written by ACT Government
Released 05/04/2016
A review of the ACT’s Compulsory Third-Party insurance (CTP) scheme has demonstrated that the government’s reforms have led to lower premiums for Canberra motorists.
In recent years, the ACT Government has improved the territory’s CTP insurance scheme which has encouraged new market entrants. In July 2013, three new CTP insurers – GIO, AAMI and APIA entered the CTP Scheme alongside NRMA.
The review of the Road Transport (Third-Party Insurance) Act 2008 shows this had an immediate impact on premiums, which were introduced at a competitive price and have been lowered over time. Further premium reductions occurred on 1 April 2016. Premiums that cost less in 2016 than they were in 2013 is a big win for Canberra drivers.
Competition has also led to a greater choice in product offerings and better quality products, such as at-fault driver cover. Premiums have also reduced for taxis and hire cars, and the ACT now has competitively priced premiums for ridesharing vehicles.
The independent review of the CTP Act was undertaken by the CTP Scheme Actuary; the review was tabled in the ACT Legislative Assembly today.
The review also found that the structure of the ACT’s CTP scheme has a strong effect on the claim costs and these claim costs contribute to high premiums compared to other jurisdictions. The review notes that the scheme design, relative to other common law schemes, limits the potential to deliver significant future cost of living reductions. The Reviewer specifically states that: “Reform of the scheme design will be required in order to deliver further significant premium reductions in the future.”
The ACT Government will now consider the review findings in detail.
- Statement ends -
Section: Andrew Barr, MLA | Media Releases
