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Third Party Insurance coming down – But in NSW

By cranky - 9 May 2013 9

The ACT already has the highest TPI in Australia, and it is blindingly obvious that this system has the interests of the NRMA and the local legal fraternity as it’s primary beneficiaries.

The wretched Smyth has ensured that the local ambulance chasing legal creatures have free reign in screwing the absolute maximum premium from unfortunate third party victims. The majority of any payout winds up in legal pockets!

It is about time Labor, if they are not also in the pockets of the legal thieves, to bring our TPI fees down to the Australian average. This figure would be hundreds of dollars less than our current fees.

As stated in the linked article, the NSW Gov considers their current system as a lawyers picnic. Ours is an even greater smorgasborg.

ACT Gov. Grow some spine!

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9 Responses to
Third Party Insurance coming down – But in NSW
cranky 4:27 pm 09 May 13

From my reading of the original newspaper item (now apparently removed), the NSW Gov seems to anticipate that by awarding damages on a no fault system, the legal thieves would be removed from the equation, and the compensation would go directly to the injured. This cuts out the fees that the legals charge, so it is highly probable that the injured party would be better off financially.

Baggy 4:01 pm 09 May 13

IrishPete said :

Baggy said :

IrishPete said :

Do you think? I’ll believe the reduced premiums when I see them. The NSW government allowed insurers to increase the premiums by 10% recently, so a a 15% reduction will only partly offset that.

IP

Maybe my math is out, maybe I’m misreading what you wrote, but surely 15% reduction of a larger figure is greater than a 10% increase of a smaller figure – therefore the reduction won’t ‘only partially offset that’ but rather fully offset that, and then some?

Sorry, yes, I should have been more precise. It will fully offset it. My point was meant to be that a 15% decrease would have been nicer before the 10% increase, not after…. (For those of us who pay NSW CTP premiums.)

IP

Can’t argue with you on that front!

PossumMagic 3:12 pm 09 May 13

Hang on a sec – it’s Smyth and the Libs who need to toughen up. The ACT Gov tried to reform CTP but got knocked back by the Libs and Greens last year.

Probably worth noting one of the charitable donators to both the Libs and Greens before the last election was Mark Blumer… Coincidence? I think not! http://www.canberratimes.com.au/act-news/parties-took-lawyers-10000-gifts-20121207-2b1hq.html

PantsMan 2:00 pm 09 May 13

Was this post approved by the ACT Law Society?

aussielyn 1:46 pm 09 May 13

I am sure that the high premiums we pay are due to accident statistics that the actuaries take into account when calculating the premiums. The median high incomes of the ACT would also be an excuse for insurance companies to price gorge.
The ACT Motorists proclivity to speed, especially in rain, and tailgate must be a big factor in the equation.
RiotACT gets a torrent when any measures are imposed to make motorists obey the speed limits. If ACT motorist obeyed the speed limits and other rules of the road the TPI costs would fall.

IrishPete 12:17 pm 09 May 13

Baggy said :

IrishPete said :

Do you think? I’ll believe the reduced premiums when I see them. The NSW government allowed insurers to increase the premiums by 10% recently, so a a 15% reduction will only partly offset that.

IP

Maybe my math is out, maybe I’m misreading what you wrote, but surely 15% reduction of a larger figure is greater than a 10% increase of a smaller figure – therefore the reduction won’t ‘only partially offset that’ but rather fully offset that, and then some?

Sorry, yes, I should have been more precise. It will fully offset it. My point was meant to be that a 15% decrease would have been nicer before the 10% increase, not after…. (For those of us who pay NSW CTP premiums.)

IP

Baggy 11:20 am 09 May 13

IrishPete said :

Do you think? I’ll believe the reduced premiums when I see them. The NSW government allowed insurers to increase the premiums by 10% recently, so a a 15% reduction will only partly offset that.

IP

Maybe my math is out, maybe I’m misreading what you wrote, but surely 15% reduction of a larger figure is greater than a 10% increase of a smaller figure – therefore the reduction won’t ‘only partially offset that’ but rather fully offset that, and then some?

dtc 10:35 am 09 May 13

You did notice that the other side of the reduced premium coin is significantly reduced benefits.

I’ve said this before, but if you are injured in a car accident due to the stupidity of someone else, why should you as an individual suffer the consequences just so that everyone else can save $50 per year on their premium. Sharing the risk doesnt mean making the injured person pay for it all.

Now a ‘no fault’ scheme – I wonder how much of that is NSW trying to off load payments from their TPI system into the NDIS system

IrishPete 9:43 am 09 May 13

Do you think? I’ll believe the reduced premiums when I see them. The NSW government allowed insurers to increase the premiums by 10% recently, so a a 15% reduction will only partly offset that.

IP

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