Brisbane, Queensland, Australia — An essential review involving discussions with relevant stakeholders will occur in 2023 and is estimated for completion by the end of the year.
The review will be conducted by MAIC as requested by the Hon. Cameron Dick MP and will seek to find opportunities to enhance the sustainability of the CTP programme. The good news for Queensland motorists is that there will be no change in calculating insurance premiums or the compensation benefits paid for CTP claims to injured road users.
MAIC reports that the insurance scheme brings in $1.7 billion in gross premiums and levies annually. The outstanding claims liability across the four licensed insurers is estimated at over $3 billion. Annually, there are approximately 7,500 claims lodged against the scheme allowing injured motorists to seek timely and fair compensation benefits for their injuries and access rehabilitation and treatment to assist recovery.
All Australian states and territories have CTP personal injury compensation schemes. However, they differ significantly in their underwriting model, coverage, design, delivery mechanisms and the benefits provided to injured persons. These design elements influence the cost of third-party insurance coverage. Queensland is one of four Australian states that use a private underwritten CTP insurance scheme featuring four different insurers (AAI, Allianz, QBE and RACQ).
Queensland’s compulsory third-party insurance scheme is widely acknowledged as one of Australia’s best, delivering fair and fast compensation payouts to people injured in car accidents where they were not at fault. The announcement is timely, given the CTP system was last reviewed in 2016.
Kerry Splatt, Brisbane law firm principal, welcomes the review, stating that Splatt Lawyers has a 28-year history of helping injured Queensland motorists negotiate the sometimes challenging CTP insurance claim system to access their fair personal injury compensation.
He stated that of Australia’s centrally funded schemes, Queensland’s CTP scheme had one of the best payout systems for injured road users with efficient administrative costs, making it an Australian leader in third-party insurance systems.
“Mr Splatt stated that the Queensland CTP insurance scheme is among the best in Australia, citing its financial soundness and fairness to all stakeholders.”
MAIC has released a discussion paper for the 2023 review, which seeks feedback on Queensland’s CTP scheme from key industry stakeholders and the greater community.
This discussion paper reviews various issues related to the CTP scheme in Queensland and encourages feedback on potential improvements.
Kerry Splatt welcomes the opportunity for ongoing improvements to the Queensland accident insurance scheme, which is already acknowledged as stable, affordable, and well-managed; continual improvement is one of the vital factors in the scheme’s success.
“I support competition between third-party insurance companies to maintain our competitive edge in Australia, with the same number of (or more) accident insurers and keeping premiums affordable.”
Insurance providers will likely attempt to reduce operating costs by limiting the rights of injured road users during the review process. This behaviour has been observed during previous CTP insurance scheme reviews. Kerry stated, “Splatt Lawyers takes motorists’ legal rights seriously and relentlessly pursues all their due entitlements.”
“As one of Queensland’s leading car accident compensation law firms, we see the significant consequences collisions have on the lives of everyday people by the actions of negligent road users. The CTP insurance scheme must maintain its track record of providing equitable and appropriate results for those harmed on the road.”
Company Name: Splatt Lawyers
Contact Person: Michael Ford
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Funds Spectrum journalist was involved in the writing and production of this article.