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Will anyone tick the box for more expensive CTP?

By johnboy 15 July 2013 37

Andrew Barr has announced the long awaited start of choice for Compulsory Third Party Insurance when registering cars:

Last month Chief Minister Katy Gallagher and I announced that three insurers: AAMI, GIO and Apia (the Australian Pensioners Insurance Agency) had been granted licences to offer CTP insurance to ACT motorists.

These three insurers are offering CTP premiums to motorists from today.

It is the first time since 1979 that Territory motorists have a choice of CTP provider – until today there was only one provider of CTP insurance.

Motor vehicle registration renewal notices will now include information about the range of CTP providers.

Having a choice of CTP providers is great news for Canberra motorists.

Competition also offers greater opportunities for innovative insurance products, more investment and employment in the ACT, and new thinking about how people injured in a motor vehicle accident might be rehabilitated and returned to health.

The new insurers to the market have developed a reputation in other jurisdictions for providing injured people with more direct pathways to rehabilitation. This sits well with the Government’s reform agenda.

For some reason a Simpsons classic springs to mind.

What’s Your opinion?


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37 Responses to
Will anyone tick the box for more expensive CTP?
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povman 12:35 pm 19 Jul 13

khepri said :

wildturkeycanoe said :

milkman said :

khepri said :

Does this mean I’m 4.5 times more likely to wipe myself out?

No, it means you’re more likely to wipe someone else out. This insurance dcoesn’t cover you.

Can’t see how a 600cc motorcycle can do more damage to “someone else” than a 250cc. Both can achieve speeds above the limit, both could weigh the same and have similar horsepower figures. Ridiculous insurance rip-off.

As for the CTP new system farce, I am not surprised. Just watch while they “compete” against each other with 4-10% increases in premiums over the next few years.

Ah, points well made milkman and wildturkeycanoe. Yes I’m pretty confident the difference in damage done by my old 250 or the 650 i’ve moved too would be pretty comparable, certainly not 450% different thats for sure.

I reckon it’s probably based more on statistics of previous cases. It means that if you’re driving a 650 you’re statistically going to cause 450% more damage than if you owned a 250 (not because the 650 is more dangerous, but because 650 owners are more dangerous).

davo101 9:32 am 19 Jul 13

Hatter64 said :

Of course the $64,000 question is “Why has there been only one CTP provider in the ACT since 1979?”.

Because all of the other insurers pulled out of the ACT market by 1979 leaving only the NRMA and none of the other insurers thought it worthwhile to come back until now.

You can wire my $64 000 to…….

Hatter64 1:59 am 19 Jul 13

Of course the $64,000 question is “Why has there been only one CTP provider in the ACT since 1979?”. One would assume that if it were as a result of ACT Government corruption or bribery (and I’m not suggesting it is) then the remaining insurers would have complained bitterly about unfair trading. Presumably they either didn’t feel it was unfair that they were excluded. It would be good to get some response from the new CTP providers as to the history of the CTP monopoly in the ACT.

khepri 12:31 pm 17 Jul 13

wildturkeycanoe said :

milkman said :

khepri said :

Does this mean I’m 4.5 times more likely to wipe myself out?

No, it means you’re more likely to wipe someone else out. This insurance dcoesn’t cover you.

Can’t see how a 600cc motorcycle can do more damage to “someone else” than a 250cc. Both can achieve speeds above the limit, both could weigh the same and have similar horsepower figures. Ridiculous insurance rip-off.

As for the CTP new system farce, I am not surprised. Just watch while they “compete” against each other with 4-10% increases in premiums over the next few years.

Ah, points well made milkman and wildturkeycanoe. Yes I’m pretty confident the difference in damage done by my old 250 or the 650 i’ve moved too would be pretty comparable, certainly not 450% different thats for sure.

Roundhead89 3:10 am 17 Jul 13

RegoACT seem to be keeping the new competition policy secret. I received my renewal form in the mail and only NRMA was shown as CTPI provider. I went online to pay and you could only access the other providers by a discreet drop down list. No prices for the other insurers were given. I stuck with the NRMA.

James_ 9:08 pm 16 Jul 13

hk0reduck said :

Everyone realizes that AAMI, GIO & APIA are all owned by the same company, don’t they?

https://en.wikipedia.org/wiki/Suncorp_Group

I’m sure they going to compete so hard against each other!

And yet whilst trying to find out how to partake in these once in 24 year savings – eventually found out on the rego website. I called Suncorp who were happy to give me a CTP quote of $327.60. Why or how can they give a quote and then not be able to provide it (even though they are the underwriters) and that the rego site wont let me buy just rego without CTP if i can (cant) contact other providers on my own. as said by KG – we can shop around to get the best deals?

This is rigged!

plus if i renewed yesterday and went with NRMA (the cheapest i found out today anyway) I would have saved $1

wildturkeycanoe said :

I love how the competitors are all $5-$20 more than NRMA and now we also have to pay a $1.00 fee for a “regulator” to oversee the new scheme. Rip-off.

54-11 7:14 pm 16 Jul 13

Slightly off-topic, but I am glad that QBE is not one of the new CTP entrants. They are (were) my comprehensive insurers, and have been utter, utter, utter f#$@& bastards. Quite happy to take the premiums but are shitty weasels when it comes to meeting their end of the bargain.

So, low premiums are only part of the story. It is how they treat you when you unfortunately come to make a claim that is the acid test.

QBE ARE MONGRELS OF THE HIGHEST ORDER (apologies for the shouting).

54-11 7:02 pm 16 Jul 13

wildturkeycanoe, I have engaged one of the local ambo-chasing law firms, so not much contact with the CTP insurer (NRMA). However, the contact so far has been pretty good.

Had a useless phone call from their call centre early on, but later contacted by their Injury Management Advisor. He is a Registered Nurse, which made things much easier (knew what I was talking about, and as I said to him, I couldn’t bullshit him either). Had a visit yesterday for an assessment by a guy who is also a physio, so again was very useful.

The real fun and games will start when the compo claim will be negotiated (maybe 2 years away) and that will be up to the lawyers to sort out. In the meantime, I’m just keeping records of everything.

Sandman 5:34 pm 16 Jul 13

Went and did one of my renewals today. The girl behind the counter basically said NRMA is still the cheapest straight off the bat and so did the girl serving at the next window. Don think any of it will make any difference.

melon1234 4:49 pm 16 Jul 13

KB1971 said :

melon1234 said :

What has the federal government Department of Infrastructure and Transport (formerly DOTARS) got to do with it?

DOTARs, DOT, TMR, whatever you want to call Queensland Transport these days. They change their name often enough.

wildturkeycanoe 4:49 pm 16 Jul 13

54-11 said :

dtc said :

JC said :

100% spot on! However it is a bit hard to change the laws when the largest injury lawyers are making large political donations, and of course changing those laws means people get lower payouts if injured, something that this board in particular doesn’t seem to like the idea of. But those same people are also happy to whine about how high the cost of CTP is and how the insurance companies are ripping us of.

Until someone elses stupidity causes you to miss a month of work with a broken leg and permanent limp and knee pain. Then we will see what you think about the difference betwee ACT and NSW compo laws.

Exactly. I’m sitting at home now with a badly busted leg and associated injuries because someone “didn’t see me”, with at least 12 months, maybe 2 years recovery time, to be followed by a total knee replacement and maybe hip replacement in the future. May never work again. I’m glad I’m in the ACT.

Sorry to hear about that, I hope you are being looked after. I’m also off work at the moment due to work injury and the insurance company hasn’t been totally inept in paying the bills. What are third party motor incidents like if you don’t mind me asking? I’m expecting you to describe it to be a horrible ordeal you just wouldn’t want to go through, and that is just the politics/paperwork side of it, not the physical pain.

54-11 2:13 pm 16 Jul 13

dtc said :

JC said :

100% spot on! However it is a bit hard to change the laws when the largest injury lawyers are making large political donations, and of course changing those laws means people get lower payouts if injured, something that this board in particular doesn’t seem to like the idea of. But those same people are also happy to whine about how high the cost of CTP is and how the insurance companies are ripping us of.

Until someone elses stupidity causes you to miss a month of work with a broken leg and permanent limp and knee pain. Then we will see what you think about the difference betwee ACT and NSW compo laws.

Exactly. I’m sitting at home now with a badly busted leg and associated injuries because someone “didn’t see me”, with at least 12 months, maybe 2 years recovery time, to be followed by a total knee replacement and maybe hip replacement in the future. May never work again. I’m glad I’m in the ACT.

Tetranitrate 10:45 am 16 Jul 13

thebrownstreak69 said :

As a New South Welshman, I have to laugh a bit when I see this. The cost of third party personel insurance in the ACT is a direct result of ACT laws. Change the laws, solve the problem, if that’s what you really want…

Oh I’m sure that’s the cause of the difference, but I wouldn’t want to bet on premiums falling to NSW levels if the law was to be changed.

dtc 10:15 am 16 Jul 13

JC said :

100% spot on! However it is a bit hard to change the laws when the largest injury lawyers are making large political donations, and of course changing those laws means people get lower payouts if injured, something that this board in particular doesn’t seem to like the idea of. But those same people are also happy to whine about how high the cost of CTP is and how the insurance companies are ripping us of.

Until someone elses stupidity causes you to miss a month of work with a broken leg and permanent limp and knee pain. Then we will see what you think about the difference betwee ACT and NSW compo laws.

hk0reduck 8:35 am 16 Jul 13

Everyone realizes that AAMI, GIO & APIA are all owned by the same company, don’t they?

https://en.wikipedia.org/wiki/Suncorp_Group

I’m sure they going to compete so hard against each other!

davo101 8:27 am 16 Jul 13

cranky said :

Am I getting this straight?

The ACT Gov has set a minimum price that these companies have to charge? And yet they expect the price to come down by introducing new competitors?

Yeap, and they set a maximum. The premiums can’t be set at a level that’s too low otherwise they will not fully fund the insurer’s liabilities, or too high as that’s gouging. They’re free to trade within these bounds, which is what you’d want them to do anyway.

thebrownstreak69 8:23 am 16 Jul 13

If I were living in Canberra I’d happily pay double if it meant not having to see the ads for Blumers, especially that poor kid…

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