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CTP going up from 16 August.

By johnboy - 7 July 2011 26

The ACT Treasury has announced that Compulsory Third Party (CTP) insurance is going up 8% from 16 August 2011.

Growth in the size of payments is to blame.

What’s Your opinion?


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26 Responses to
CTP going up from 16 August.
Jivrashia 9:57 am 08 Jul 11

Classified said :

You guys are getting ripped.

WE KNOW THAT. Why do you think we’re whinging? This is definitely a whinge-worthy topic for Canberrans.

helium said :

So many interstate plates in my suburb, some have been here 7+ years.

I think you can dob them in. Police might do something about it if they can get some time away from stabbers, muggers, burglars, hit-and-runners, and hoons.

johnboy said :

No other insurer wants to touch this market.

Last year, or the year before, there was talk about another player entering the market, but it didn’t come to be. It was either AAMI or Allianz.

dtc said :

should get less money than a person with

FIFY

Spideydog 9:46 am 08 Jul 11

johnboy said :

time_killer said :

Does anyone know how NRMA was allowed to get the CTP monopoly in the first place?

No other insurer wants to touch this market.

Apparently our market is too small and as such too troublesome and financially not viable ???? So we are going to continue to get gouged ………

johnboy 9:12 am 08 Jul 11

time_killer said :

Does anyone know how NRMA was allowed to get the CTP monopoly in the first place?

No other insurer wants to touch this market.

Innovation 8:56 am 08 Jul 11

#10 dtc – Thanks for that. I should have worked that one out for myself. I wonder if, for example, NSW CTP insurers price in a risk for their vehicles in at fault accidents in the ACT? Presumably, the closer, the NSW resident is to the ACT, the higher the risk. Perhaps they should show that added premium on their Green Slips…..

time_killer 8:54 am 08 Jul 11

Does anyone know how NRMA was allowed to get the CTP monopoly in the first place?

dtc 10:21 pm 07 Jul 11

Innovation said :

I’ve been giving this more thought. Does anyone know which insurance system (ie ACT or NSW) applies under various scenarios eg:

1/ ACT vehicle at fault in accident in NSW? Does this mean that the NSW Court’s can go for broke because our CTP isn’t capped?
2/ NSW vehicle at fault in accident in ACT? Does this mean that an injured ACT resident is limited by the amount of insurance that they can receive?.

The relevant law is the law where the accident occurs. So NSW insurance isnt capped per se, its that if you have a motor vehicle accident in NSW the damages the court can award is limited. So insurers of NSW motor vehicles know that the majority of accidents they cover will have limited damages. If an ACT vehicle has an accident in NSW, then the NSW laws apply; and vice versa.

Of course, whether you think it fair that someone who is injured in a motor vehicle accident, or a workplace accident (the two most common causes) should get less money then a person with the equivalent injuries arising from a different cause is dependent upon whether you think you should be entitled to save $300 per year and place the burden of injury on the injured person.

Innovation 9:53 pm 07 Jul 11

I’ve been giving this more thought. Does anyone know which insurance system (ie ACT or NSW) applies under various scenarios eg:

1/ ACT vehicle at fault in accident in NSW? Does this mean that the NSW Court’s can go for broke because our CTP isn’t capped?
2/ NSW vehicle at fault in accident in ACT? Does this mean that an injured ACT resident is limited by the amount of insurance that they can receive?

Incidentally, after reading the other RA threads running at the moment, I don’t think I’m happy that my CTP premium subsidises people with attitudes like Mr G’s……

helium 8:05 pm 07 Jul 11

I recall a Canberra Times story from this time last year about insurance companies gouging millions from ACT, I can’t find out what the CTP claims v’s premiums, but they do need to report to the ACT government.

We need the legislation changed so that CTP reflects the drivers of a vehicle, their experience and driving history, like it works in NSW. Then high risk drivers would pay to match their behaviour.

Also how about enforcing the rules about having a ACT rego if you reside here. So many interstate plates in my suburb, some have been here 7+ years.

Innovation 5:40 pm 07 Jul 11

I must admit that I am in two minds about CTP insurance in the ACT. On one hand, “assuming” NRMA is charging a fair price…, all of us ACT road users are making a contribution towards payouts for those the courts (hopefully correctly …..) have determined have a genuine need. Because it is a flat fee, our premium also includes a social contribution towards those ACT road users (or their more dangerous vehicles) where there is a higher degree of risk of causing accidents and third party injuries.

On the other hand, there is no competition at all, the higher premiums (compared to the States) presumably encourage more per capita drivers to not register their cars (ignoring the success or otherwise of RAPID), and there is no incentive in insurance premiums for bad drivers to modify their behaviour.

Perhaps, while we all make up our minds, it would be better if at least the CTP component on our rego papers was broken up to show how much NRMA would charge for a level of insurance (equivalent to that in NSW), how much extra we pay (or subsidy we get) because of our personal and vehicle statistics and how much extra NRMA charges because of the more generous ACT insurance.

RedDogInCan 5:29 pm 07 Jul 11

Aren’t ACTION buses currently plastered with ads from the CTP provider saying how they have reduced premiums?

Classified 4:41 pm 07 Jul 11

Jivrashia said :

When is some goddamn competition going to be introduced into the ACT’s CTP insurance market??

Probably when insurers don’t have to accept unlimited liability. The one insurer that is here gets paid for that risk.

As an aside, I live in NSW, and my wife’s brand new car costs about $1000 per year, for rego, CTP and comprehensive insurance combined. You guys are getting ripped.

Mysteryman 3:41 pm 07 Jul 11

Bloody hell. So rego will be about $1000 next year? Great.

johnboy 3:16 pm 07 Jul 11

ta, fixed now.

Jivrashia 3:12 pm 07 Jul 11

When is some goddamn competition going to be introduced into the ACT’s CTP insurance market??

(Link to ACT Treasury CTP Premium Info page)

JB, the link in your OP is pointing to something irrelevant.

The Frots 2:35 pm 07 Jul 11

A rise of 8%………? Dear God, when does this stop.

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