Motorists' compulsory third party insurance privatised by South Australian government
South Australian motorists were given a choice of their private provider for third party compulsory insurance, after the state government's Motor Acccident Commission was privatised in 2016.
Compulsory third party (CTP) insurance for South Australia’s more than one million motorists was privatised in 2016.
Previously all compulsory third party insurance was handled by the state government’s Motor Accident Commission (MAC).
Under the change, compulsory third party initially was allocated to private providers QBE Insurance (Australia), AAMI, SGIC and Allianz Australia Insurance.
the state government department of planning, transport and infrastructure continued to issue complusory third party insurance renewal notices with vehicle registration.
Compulsory third party prices were fixed to CPI-like increases for the first three years (about 3% on average annual premiums). After that, compulsory third party would move to a fully competitive market with other approved insurers able to enter the market.
In the fourth year, motorists could stay with their allocated compulsory third party insurer or choose to shop for better offers.
An independent Compulsory Third Party Insurance Regulator was appointed to oversee all insurers, protecting consumers and setting premiums.
The cost of premiums under the privatised scheme has been a concern.
South Australia’s compulsory third party scheme has had some major reforms. Before 2014, the scheme didn’t compensate for serious road injuries if there was no other vehicle at fault. For example, a car driver who became a quadriplegic after hitting a kangaroo wouldn’t have been eligible for a claim.
The new compulsory third party insurance scheme provided lifetime treatment, care and support to those who suffered very serious injuries from accidents on South Australian roads, regardless of fault.