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Legislative Assembly for the ACT: 2003 Week 13 Hansard (27 November) . . Page.. 4958 ..
In relation to Compulsory Third Party (CTP) insurance premiums for motor vehicles:
(1) What is the current cost to vehicle owners of the CTP motor vehicle insurance premium in the ACT;
(2) Is this cost the same for all vehicles regardless of class or type;
(3) If not, what are the premiums for each class or type of vehicle;
(4) Are CTP premiums in the ACT different to those in NSW, and if so, how and why.
Mr Wood
: The answer to the member's question is as follows:(1) The current cost to ACT vehicle owners of the CTP motor vehicle insurance premium for a passenger vehicle (eg a car or station wagon) with 12 months private registration is $399.45.
(2) No. Premiums vary according to the claims exposure of each class of vehicle. Within each class, a higher premium applies if the owner is registered with the Australian Taxation Office (ATO) for the Goods and Services Tax (GST), enabling the owner to claim back the GST component of the premium from the ATO as an input tax credit.
(3) The current premium rates for each class of vehicle are shown in the attached table.
(4) Yes. However, it is difficult to make meaningful comparisons between premiums payable under the NSW and ACT CTP schemes because the two schemes differ in many respects. In recent years benefits for injured persons under the NSW scheme have been significantly reduced, as a trade-off for lower premium rates. The ACT scheme can potentially be more generous to accident victims, having none of the restrictions on claiming general damages for pain and suffering that apply in NSW.
In the ACT, premiums are community rated, so all owners of the same class of vehicle pay the same premium. NSW CTP premiums also take into account identifiable risk factors such as the owner's (or driver's) age, accident and insurance history (including whether he or she is an existing customer of the insurer), the vehicle's age and where it is garaged. As a result, some NSW motorists are charged much higher CTP premiums than other NSW (or ACT) motorists for the same class of vehicle, particularly where the vehicle is driven by younger drivers. For example, CTP premiums in excess of $570 apply to cars garaged in Sydney that are used by drivers under 23 years of age.
MINIMUM AND MAXIMUM (12 MONTH) RATES OF CTP PREMIUMS FOR 2003/04
Item | Classification |
1 | Ambulance ....................................................................... | $559.20 | $604.80 |
2 | Breakdown vehicle............................................................... | $399.45 | $432.00 |
3 | Bus or tourist vehicle | ||
(a) if the vehicle has seating for not more than 16 adults | |||
(including the driver)...................................................... | $798.90 | $864.00 | |
(b) if the vehicle has seating for more than 16 adults | |||
(including the driver)...................................................... | $1,717.60 | $1,857.60 |
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