Page 1057 - Week 03 - Thursday, 23 March 2017

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e) 2016-17 (to the end of December 2016):

i.

Treatment and Care

$11.923 million;

ii.

General Damages

$14.714 million;

iii.

Economic Loss

$9.083 million;

iv.

Legal Costs

$12.691 million.

(10) As shown in the following table, the ACT currently has the second highest total compulsory third-party (CTP) premium in Australia at $585.90, after NSW at $674.79.

New South Wales (NSW) announced recently that it will proceed with reforms to introduce a hybrid no-fault CTP insurance scheme underwritten by private insurers. Under a reformed CTP scheme, NSW expects that the average CTP premium will be reduced by more than $100. If this level of reduction is achieved in NSW, then without reform to our scheme, the ACT will have the highest CTP premiums in Australia.

TOTAL CTP PREMIUM FOR A CLASS 1 PASSENGER VEHICLE

NSW

ACT

NT

Vic

SA

WA

Qld

Tas

$674.79

$585.90

$546.85

$502.70

$500.00

$409.35

$368.60

$338.00

The total CTP premiums shown are for a class 1 passenger vehicle (private use) for 12 months across the States as at 1 October 2016, based on the lowest cost provider.

The total CTP premium includes levies imposed by the States on CTP; stamp duty (where applicable); as well as the lifetime care (LTC) levy. The LTC levy for a number of States is embedded within the CTP premium and is not identifiable. As such, for comparability purposes, where the LTC levy is separately calculated and identified, it is also included in the total CTP premium.

(11) The ACT CTP scheme is an at-fault, Common Law based system with settlement of claims predominantly made through the courts system.

In the first instance, the scheme provides an early payment of up to $5,000 for treatment and medical expenses without the need to lodge a full claim, with these benefits available regardless of who is at-fault. This payment provides early access to treatment and care as soon as possible after an accident, to support a better health outcome.

However, the vast majority of claims are subject to the court’s processes.

If a claimant’s medical expenses are expected to be more than $5,000 or recovery will take longer than six months, there is a requirement to bring notice of a court proceeding against the insurer for the claim, in order to pursue compensation for medical, treatment and care expenses; as well as loss of earning capacity; and for general damages as a result of injuries.

Offers of settlement, compulsory conferences, and mandatory final offers are undertaken as a way of reaching agreement on a settlement prior to a court hearing.

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