26 September 2023

Insurance refund to offset rising costs

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Canberra motorists renewing their vehicle registration over the next 12 months can expect to save money on their insurance premiums under a scheme to offset the rising cost of living.

Announced by Special Minister of State, Chris Steel, the Motor Accident Injuries (MAI) Scheme refund will vary by vehicle class, but eligible motorists with passenger vehicles could expect to see a refund of $19.90 on their renewal notice.

“Canberra’s Motor Accident Injuries Scheme is delivering cheaper premiums, broader coverage and faster support for people who are injured on Canberra’s roads,” Mr Steel said.

“Because the no-fault scheme has lower costs, insurers via the ACT Government’s one-stop registration process can provide a one-off premium refund when people renew their vehicle registrations,” he said.

“We recognise every little bit counts at a time when households are facing higher fuel prices and other cost of living pressures.”

Mr Steel said the refund would be provided to all eligible motorists renewing their current vehicle registration with a start date over the coming year, falling between 30 April 2022 and 29 April 2023.

The Minister said this would capture current vehicle owners in eligible vehicle classes who previously held a Compulsory Third Party (CTP) policy.

“The refund is due to the switch from the higher priced Compulsory Third Party (CTP) scheme to the lower priced Motor Accident Injuries (MAI) Scheme, which came into effect in 2020,” he said.

“The crossover period between the two schemes meant many motorists had already paid the higher priced CTP premium before the MAI Scheme took effect.”

Mr Steel said the Territory was adding it to registration renewal notices to make it easier for people to receive the refund.

He said refunds would automatically appear on the registration renewal reminder notices that Canberrans received from Access Canberra.

“These are based on the vehicle class and will be the same amount regardless of whether people choose to renew their registration for three, six or 12 months – or which insurer they choose.”

Mr Steel said motorcycles were not eligible for the refund as those motorists were at a substantially higher risk of injury than other vehicle classes, and received a premium subsidy within the broader scheme.

Further information on the MAI Scheme can be accessed at this PS News link.

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