Page 2579 - Week 06 - Thursday, 23 June 2011
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provisioning for ultimate claims payouts necessitates a higher premium than the average family car (passenger vehicle) - in other words, the risk relativities are much higher.
(4) The table below indicates the number of claims made in relation to injuries sustained in a motor crash involving a taxi.
|
Accident |
Claims outstanding |
|
2006 |
16 |
|
2007 |
21 |
|
2008 |
20 |
|
2009 |
28 |
|
2010 |
26 |
The number of claims for the average family car (passenger vehicle) is between 800-1000 for approximately 250,000 motor vehicles. It is however, insufficient to consider the number of claims in raw terms as there are only 310 taxis (as at the 2/04/2011). Comparatively the percentage of claims per registered vehicles is much higher for taxis (8.4 per cent), being 21 times that of the percentage for the average family car (0.4 per cent using the upper band of 1000 claims).
(5) The table below indicates the number of those claims in answer to (4) that are still outstanding. As the table below reflects, around half of the claims in that last two years are still outstanding.
|
Accident |
Claims outstanding |
|
2006 |
1 |
|
2007 |
2 |
|
2008 |
2 |
|
2009 |
12 |
|
2010 |
13 |
(6) The information in the table below (provided by NRMA) in respect of the compensation paid for those claims in relation to taxis that have been finalised.
|
Accident Year |
Compensation Paid |
Claims Finalised |
|
2006 |
$929,785.23 |
15 |
|
2007 |
$1,326,491.63 |
19 |
|
2008 |
$626,540.30 |
18 |
|
2009 |
$266,902.62 |
16 |
|
2010 |
$301,319.57 |
13 |
|
TOTAL |
$3,451,039.35 |
81 |
The information above (provided by NRMA) is accurate but not indicative of the overall position. It is also necessary to understand that the long-tail nature of CTP claims means that the compensation paid in any given year represents a snapshot in time, in other words it does not correspond directly to the claims that are made in that year. If one takes the total incurred costs into account, as at 2009, NRMA indicated it was carrying a rolling loss position on taxi CTP premiums in excess of $5 million.
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