Thursday, March 25, 2010
Government announces review into CTP scheme
In State Parliament today, Treasurer Andrew Fraser said the Government has directed the scheme regulator Motor Accident Insurance Commission (MAIC) to conduct a review into the state’s Compulsory Third Party (CTP) scheme.
Mr Fraser said CTP levels today were lower than those of 2003, but a review would seek to examine the model.
“We last did a review of the CTP scheme in 1999. That review delivered competition in the setting of insurance premiums and gave motorists choice between insurers,” Mr Fraser said.
“Our premiums today are lower than they were in 2003, however the competition that has characterised premium setting in recent years has reduced.
“Insurers in the last two quarters have filed at the ceiling, reducing choice and competitive tension.
“I want to ensure that the CTP system in this state is providing the best value for money for Queensland motorists.”
Mr Fraser said the Government will be inviting consultation on this review which is expected to be completed by the middle of this year.
Mr Fraser said the review is about looking at improving efficiencies in the delivery of CTP insurance by ensuring administration and delivery costs are as low as possible which will in turn benefit motor vehicle owners. This review will not impact on claimant benefits. Claimant benefits are outside the scope of this review.
“If premiums can be driven lower through further reforms or changes to the way our scheme is structured, then the government will pursue these reforms.
“That’s what we have delivered in the past, and this review will ensure we deliver that for the future.”
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