The Law Society on CTP reform

johnboy 17 August 2012 3

Our learned friends have sent in their thoughts on the vexed issue of CTP reform in Canberra:

Politics is distorting the facts about third party insurance as the major parties rush to claim the high ground as the guardians of the cost of living.

The facts are that the Road Transport (Third-Party Insurance) Amendment Bill 2011, which will shortly be debated in the Legislative Assembly, will not reduce insurance premiums for ACT motorists.

But it will dramatically increase the cost of living for people injured in motor vehicle accidents.

The legislation cuts compensation entitlements for:
• The most seriously injured people, and
• Pain and suffering in 90% of cases.

It does nothing to promote rehabilitation.

Car owners shouldn’t have to subsidise a more profitable market for insurance companies.

One has to hope that the National Disability Insurance Scheme will take up some of the slack here?

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3 Responses to The Law Society on CTP reform
Innovation Innovation 9:45 am 18 Aug 12

cranky said :

…NRMA ACT $626.30
NRMA NSW $531.81
AAMI NSW $378.02

Actually you prompted me to do the same:
– Car – NRMA ACT (as of 1/9) was $578.70, NRMA NSW was $411.07 and AAMI NSW was $373.61
– Bike NRMA ACT (as of 1/9) was $105.70, NRMA NSW was $292.51 and AAMI NSW was $290.63, Swann NSW $144

Under the NSW system I could shop around and be about $150 better off (provided I never needed compensation) but I was surprised the bike was so much more expensive.

cranky cranky 6:28 pm 17 Aug 12

In a post regarding ACT patients being treated in the QBN Hospital, the CM was quoted as saying

“People in the capital region don’t care about lines on the map, they just want their surgery done,” the Chief Minister said.

Pity the same dosn’t apply to CTP insurance.

cranky cranky 4:08 pm 17 Aug 12

So our learned friends have decided that reducing the amounts payable to injured parties, and by applying a more formulaic method of awarding damages, (thus, one assumes, reducing legal fees), the insurance companies will simply continue to charge their current premiums?

‘Promote rehabilitation’ – In a case I am aware of, it was only after 10 years of fighting for a (small) payout that the injured party could afford the rehabilitation. It took 10 years because of, you guessed it, solicitors milking it for all it was worth.

Out of interest, my rego renewal having arrived today, I decided to get on-line quotes for my vehicle, but lying and saying it was garaged in Queanbeyan. All other details were correct (vehicle, driver, use, etc)

NRMA ACT $626.30
NRMA NSW $531.81
AAMI NSW $378.02

If the Law Society consider a 65% diference in premium as ‘about the same’, they should perhaps return to the real world.

Self serving claptrap. Only interest is in maintaining their inflated incomes.

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