The first one and a half years of the Transport Canberra and City Services Directorate’s Motor Accident Injuries Scheme has delivered cheaper premiums, broader coverage and faster support for injured Canberrans, according to new data from the Motor Accident Injuries Commission.
Announcing the release of the Commission’s Motor Accident Injuries (MAI) Quarterly Report June 2021, Minster for Transport and City Services, Chris Steel said MAI Insurance was compulsory for all ACT drivers upon registration of a vehicle and replaced Compulsory Third Party Insurance in February 2020.
Mr Steel said the Directorate’s MAI Scheme ensured that everyone injured in a motor vehicle accident was protected, regardless of who was at fault.
“Under the old Scheme, people often had to go to court and argue for months or years to get a payout to fund their treatment and cover lost income – with limited support in the meantime,” he said.
“Now, Canberrans are getting access to treatment, care and payments for lost income much more quickly.
“In the first year and a half of the new Scheme, the median time between lodgement of a complete application and the first payment by insurers has been just 13 days for treatment and care expenses, and 29 days for income replacement payments.”
Mr Steel said almost a quarter of applicants who received the benefits were either at fault for their accident or fault had not yet been determined.
The Minister said under the old Scheme, those Canberrans would have been left with nothing, even in cases of genuine accidents where no-one was to blame, like those involving icy roads or animals.
“In the first year and a half, 57 per cent of Scheme payments were made for treatment and care, and 33 per cent for income replacement benefits,” he said.
“Under the previous Scheme, about a quarter of all payments were directed towards legal and investigation costs, resulting in significantly lower shares being paid out for treatment and care and income benefits.”
He said under the Scheme, premiums reduced from an average of $517 per vehicle to an average of $437.
“The ACT has gone from having the most expensive premiums in the country to being cheaper than NSW,” Mr Steel said.
The Commission’s four-page Quarterly Report can be accessed at this PS News link.
