In a report released on 27 February 2020, the Queensland Motor Accident Insurance Commission (MAIC) confirmed that CTP insurance is the second most affordable in Australia.
Compulsory Third Party (CTP) insurance protects motor vehicle owners and drivers from being held financially responsible if they injure someone in an accident.
It also assists an injured person from receiving medical treatment, rehabilitation support, and a monetary payment based on their loss.
The MAIC report highlights that:
- Premiums are highly affordable, with the annual premium sitting at 23% of a Queenslander’s average weekly wage. This is the best level of affordability of any Australian CTP insurance scheme.
- Scheme efficiency is improving, with claimant benefits above 60% of the premium – with scope to improve even further in 2020.
- Scheme reforms introduced in December 2019 aim to put a stop to car crash scammers or ‘claim farmers’.
- Queensland Government road safety initiatives developed to stop distracted driving and keep Queenslanders safe on our roads.
- The funding of new research and initiatives to reduce the incidence and effects of road trauma.
This is in contrast with the claims by major insurers Suncorp and RACQ that Queensland’s CTP scheme needed to be overhauled and changed to no-fault CTP system.
Leading advocacy group the Australian Lawyers Alliance has stated that changing the scheme to a no-fault CTP system would mean “higher prices for all drivers, less compensation for injured motorists and more profits for big insurance companies like RACQ and Suncorp.”
Access the full 2019 MAIC Report here.