Local CTP insurance prices rise
NORTHERN Rivers motorists could be slugged with even higher green slip insurance prices, despite already paying more than their city counterparts, under proposed no-fault scheme reforms, according to the Far North Coast Law Society.
Society president Bill Grace said Northern Rivers motorists already paid more for CTP insurance than Sydney drivers due to a higher medical care and injury services levy component, which varied depending on where they drove.
"Country motorists pay 39.5% for the levy on a CTP premium where- as Sydney motorists pay only 31%," he said.
This was disputed by a Motor Accidents Authority (MAA) spokesperson who said a country motorist with the same car, licence and driving history as a Sydney driver paid less for CTP insurance.
Under the proposal, Mr Grace said an extra 7000 drivers a year who weren't at fault in a crash could claim compensation which could only see CTP costs rise, as insur- ance companies would incur more payouts.
"The Victorian no-fault scheme is currently in deficit for $1 billion and the only other no fault scheme in the world, in New Zealand, is in deficit by $2.3 billion," he said.
Mr Grace said the no-fault scheme reforms, if legislated, would also leave most people injured in crashes without compensation after five years and no legal recourse."After that, unless they are very seriously injured they will get nothing." Currently, Mr Grace said injured people were paid compensation until doctors advised otherwise. A MAAspokesman said the higher medical levy on Northern Rivers motorists was because injuries sustained on country roads tended to result in fewer, but more severe injuries.
"The new scheme will give improved certainty of benefits, and earlier payment, than the current scheme in which the majority of compensation is typically paid three to five years after the accident," the spokesman said.