The Citizens’ Jury appointed to advise on the most appropriate scheme for compulsory third party (CTP) insurance in the ACT has returned its verdict.
The Jury has recommended a scheme that would entitle all ACT residents to have access to CTP insurance, regardless of whether they were at fault in an accident or not.
The Jury’s report said that under the new plan — known as Model D among the four models prepared by the Jury — all people injured in car accidents would have access to a set of defined benefits, while those with serious injuries caused by the negligence of another driver would have access to a higher level of cover through common law proceedings.
It said it selected this model because it provided early access to all people regardless of fault.
The report said that defined benefits would include medical treatment for up to five years, care for up to five years and a quality-of-life benefit.
It said Model D was the option with the lowest premiums, with the cost range between $385 and $465 a year — below the current average premium of $556.
The Jury report said under the current system, drivers who are not at fault, but cannot prove that another driver was at fault, are not covered by CTP insurance — for example, a driver who ran off the road in wet weather without the involvement of another car, who was not previously covered, now will be.
“The availability of long-term defined benefits shifts focus from large settlements to early recovery,” it said.
The Jury report said the new scheme puts a cap of $500,000 on the quality-of-life benefit.
Of the 39 Jurors, 32 voted for Model D; four Jurors submitted a minority report, saying that under the new scheme “compensation will be spread too thinly”.
The Jury’s six-page report can be accessed at this PS News link.
