Compulsory Third-Party Insurance

The Hon. J.M. RANKINE (Wright) (14:20): My question is to the Treasurer. Can you provide an update on the implementation of the private sector provision of compulsory third-party insurance from 1 July 2016?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:21): I am pleased to advise the house that the compulsory third-party insurance reform project is progressing well in readiness for the transition to the new private sector insurer arrangements on 1 July 2016. From 1 July 2016, CTP insurance will be provided by four well-known and established insurers for the first three years, before transitioning to a fully competitive market.

Under the new model, more than one million South Australian motorists will be allocated to one of the four private CTP providers—QBE, AAMI, SGIC and Allianz. It is important to note that, for the first three years under the fixed-price model, there is no advantage to being with a particular insurer. The cover and price of insurance is the same and the entitlement to compensation motorists may receive should they be injured and have an eligible claim will also be the same regardless of the approved insurer.

In year 4, when the market is completely deregulated, then motorists will be free to choose a provider of their choice and shop around for their best price. At this point, we expect even more competition for motorists' business as other insurers, such as the RAA, consider entering the market. The Department of Planning, Transport and Infrastructure will continue to issue CTP insurance renewal processes as a part of the vehicle registration process. The current payment methods will also remain, including the EzyReg website, an app and, of course, direct debit.

An education campaign has already commenced promoting the changes. Advertising materials have been placed in the Sunday Mail, the Adelaide Advertiser, all Messenger newspapers and newspapers in languages other than English, including Greek, Italian, Hindu, Vietnamese and Chinese press in South Australia. A variety of media have been targeted to ensure all motorists are made aware of these changes. These include metropolitan and regional radio commercials, web-based advertising and social media. A number of government agencies are also supporting this initiative, including Service SA, DPTI, SA Health and, of course, the Motor Accident Commission.

A new website (www.ctp.sa.gov.au) has also been developed and is live. It is an education tool and provides information about CTP insurance, what it covers, what to do in the unfortunate circumstance of a crash, as well as web links to all private insurers supporting South Australian motorists. Renewals will be posted early next week for the new financial year. Every motorist will receive a leaflet explaining these changes and the details to find out more information via the CTP insurance website.

The renewal notice itself will also promote the changes and a link to the website. All motorists will have to do is receive their registration notice in the mail and pay how they normally would. The insurance certificate will display the name of each motorist's nominated insurer from 1 July 2016. To make a claim, motorists will call the same number as they do now and they will be redirected to their nominated insurer. All four insurers will be ready to assist and provide CTP insurance support for all South Australian motorists. The government continues to work with each of the approved insurers to ensure a successful transition to our new private CTP insurance arrangements that will begin on 1 July 2016.