Third Party Insurance coming down - But in NSW

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.

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!

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

Was this post approved by the ACT Law Society?

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.

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

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?

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

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