Released 22/10/2021
The ACT’s Motor Accident Injuries Scheme is delivering cheaper premiums, broader coverage and faster support for people who are injured on Canberra’s roads, new data released from the first year and a half of the scheme shows.
Motor Accident Injuries Insurance is compulsory for all Canberra drivers upon registration of a vehicle. It replaced Compulsory Third Party Insurance in February 2020 following ground-up reform of the scheme to ensure that everyone injured in a motor vehicle accident is protected, regardless of who is at fault in an accident.
“Since the ACT moved to a no-fault scheme, we’ve seen great improvements in how this insurance is working to protect and support injured Canberrans,” said Special Minister of State Chris Steel.
“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. 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.
“Importantly, almost a quarter of applicants who receive these benefits were either at fault for their accident or fault has not yet been determined. This shows the benefit of moving to a no-fault scheme because it means everyone who pays for an insurance policy is able to access support. Under the old scheme these Canberrans would have been left with nothing, even in cases of genuine accidents – like those involving icy roads or animals – where no-one was to blame.
“More than 95 per cent of lodged applications are also being accepted by MAI insurers, which shows these providers are doing the right thing and providing support when it’s needed."
The new scheme settings have dramatically increased the share of total scheme costs being directed towards providing treatment, care and income replacement payments to injured Canberrans.
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. 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.
“At the same time as the new scheme has expanded coverage to more Canberrans and helped them get support sooner, premiums have also become more affordable,” said Minister Steel.
“Premiums have reduced from an average of $517 per vehicle before the new scheme took effect to an average of $437 in July 2021 – a saving of around $80 or more than 15 per cent for Canberra drivers. The ACT has gone from having the most expensive premiums in the country to being cheaper than NSW.
“Evidence from the first year and a half of the scheme shows the ACT’s Motor Accident Injuries Scheme is achieving the objectives of better supporting Canberrans while delivering a more affordable scheme. This is a great outcome that highlights why the ACT Government pursued ground-up reform."
More information is available at: www.treasury.act.gov.au/maic/scheme-knowledge-centre
- Statement ends -
Chris Steel, MLA | Media Releases