19 June 2007

Third Party ripoff to end

| cranky
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Completely out of left field, Sonic has announced the ending of the cosy little arrangement by which the NRMA was the sole provider of compulsory third party insurance in the ACT. Charging as much as they could get away with, the Government would rubber stamp any increase in rates the NRMA demanded.

The scheme will be opened up to competition, the expected savings totalling in the hundreds of dollars per vehicle, as other insurers vie for your business.

In the absence of any explanation as to the reason for this sudden and unexpected move, perhaps the prospect of competition (from the proposed Motorists party) has had the beneficial effect of concentrating the thought processes of Sonic and Co, and on the pockets of motorists.

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actCitizenKane1:47 pm 21 Jun 07

… impact on … GST revenue…
sure, something is ‘lost’ here, but far more GST is leached away from the ACT because of the ease with which so-called ‘markets’ are allowed to blossum uncontrolled within the ACT? You know the sort of thing, the endless ‘persian carpet’ and ‘fur coat’ sales at Albert Hall, the multitude of ‘trash and treasure’ ventures tolerated in suburban car parks, the so-called ‘arts & crafts’ and ‘farmers’ markets sprouting up all over, and so on. The list is almost endless. These ‘markets’ are part of the ‘black economy’, they contribute next to nothing to the ACT economy and quite apart from GST loss, they wreak havoc amongst the real and legitimate ACT business community. They need to be better monitored, if not banned outright. No?

I’d like to think it was a result of our discussion a couple of weeks back http://the-riotact.com/?p=5104 about people not changing their rego because it’s so expensive here and the impact on population stats and therefore GST revenue…

If the 3rd party system wasn’t so geared to paying the funking lawyers and their ilk 50% of all monies collected, premiums would be reduced by much more than this initiative will ever produce.

A society in which the rights of lawyers is subservient to the rights of the community as a whole would have a nice ‘no-fault but accept a modicum of risk in your life’ policy, in which victims of road accidents would have their needs met by society but no large lump sum payouts to squander and/or share with a greedy scumbag ambulance chaser. But what’s the chance of that when even the victims see the cash payout as a compensatory jackpot?

lol @ the last line of bigred’s comment

crap… just paid my 12 months rego last week!

I love it.

The relevant media release is here – though no real clue in there as to when we can expect this to happen.

when is this supposed to happen ?

Anyone else just pay their rego for the next 12 months on more than one vehicle?

about bloody time. Years ago, NRMA rewarded us by sharing their profits from this; they’d give very sizeable rebates whenever they’d made a big profit from it. hah, now they have greedy shareholders to feed. We all do SO well when companies get shareholders! NOT.

All insurance has gone stupid. My old car, me accident-free, still costs around 400 bucks to insure every year. I investigated how much for third party property only, and it was almost the same. ye gods.

I have mixed feelings about this news; as a motorist I’m hopeful (and that’s all my cynicism will allow) but as an IAG shareholder I find this news very troubling!

the cost savings in NSW didn’t come from competition alone. They came from reducing benefits and a general discount on all payouts. Sounds prety good unless you get hit by an out of control suburban mum in her 4X4 killing machine.

philbert83au9:40 pm 19 Jun 07

It seems like a good plan, although from my NSW experience the green slips always seemed within a few dollars of each other no matter which company you went to – the idea that competition cut prices didn’t seem to really work.

Vic Bitterman8:46 pm 19 Jun 07

About time!!!! I am so sure that opening up competition to the cartel known as IAG (NRMA) can only offer benefits to us motorists.

VYBerlinaV8 now_with_added grunt7:37 pm 19 Jun 07

I live over the border, but this is brilliant news for Canberrans.

Damnit! This was one of my pet motoring gripes living in Canberra. Now I’m only left with merging lanes, tailgating, speed cameras and the youth.

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