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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-03-13 Daily Xml
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COMPULSORY THIRD-PARTY INSURANCE

Mr SIBBONS (Mitchell) (14:39): Can the Treasurer inform the house about what the government is doing to improve the compulsory third-party insurance scheme for South Australian motorists?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:39): I thank the member for Mitchell for his question. The government is committed to ensuring that injured South Australians are supported in their time of need. Despite our best road safety efforts, thousands of South Australians are injured in road crashes every year. The injuries can cause financial losses, such as time off work and treatment expenses, and they sometimes leave the person permanently disabled. In severe cases, the person may need long-term care, such as home nursing or having to live in supported accommodation. Altogether, these losses are very costly, costly to the individual, of course, but also costly to their family and to the state.

In most cases, the driver who causes the crash cannot afford to pay for the damage done. This is why South Australia has had a compulsory third-party insurance scheme since 1936. When one registers their motor vehicle, most of the cost of registration is the annual CTP premium, covering against the risk that you might cause a crash that injures someone.

The scheme is not well known and many people only find out about it if they are involved in a crash. Some are surprised to find that the scheme does not cover all crashes. It only applies where the injured person can show that the crash was another driver's fault. For instance, if you are injured because another driver runs a red light or overtakes on a blind corner, you can claim on the scheme. If you are injured because you fall asleep at the wheel and hit a tree, you cannot.

All Australian states have CTP schemes of some sort, but not all of them are like ours. With some, you can claim even if the crash is your fault. Comparing the premiums around Australia, these no-fault schemes do not necessarily cost more. The South Australian CTP premium is currently among the more expensive in Australia; this is because the cost depends as much on the benefits provided as it does on the type of scheme.

The government believes that it is time to look at our scheme again. On 4 March I launched a green paper outlining some of the options the government could take to improve the scheme. A reformed scheme has the potential to deliver improved fairness while at the same time easing the financial burden on South Australian motorists and taxpayers.

The Council of Australian Governments is currently looking into a national disability insurance scheme to provide long-term care and support for people who suffer catastrophic injuries. Based on the current proposals, the impost on the South Australian CTP scheme, without any other reforms, could see a significant increase to the premium costs for South Australian motorists.

I would encourage anyone with an interest on this topic to visit www.treasury.sa.gov.au/ctpgreenpaper, look at the green paper and provide comment by 27 April. Achieving better recovery, rehabilitation and ongoing care and support outcomes for injured motorists is a key focus for this review.

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