South Australia CTP Insurance

Information about South Australia’s Compulsory Third Party (CTP) Insurance

Compulsory third party insurance (CTP) in South Australia is managed and (at time of writing) solely provided by the Motor Accident Commission (MAC). As was announced in the 2014-15 State Budget, on 1 July 2016, the provision of CTP insurance will be opened to the private sector and the MAC will cease its role as the sole provider.

In recent years, SA’s CTP scheme has had some major reforms. Before 1 July 2014, the scheme did not provide compensation for serious road injuries if there was no other vehicle at fault. For example, someone who becomes a quadriplegic after hitting a kangaroo wouldn’t have been eligible for a claim. The new CTP scheme provides lifetime treatment, care and support to those who suffered very serious injuries from accidents on SA roads, regardless of fault.

Another reform was the decision to privatise MAC in 2015; a decision not without dispute, with Shadow State  Treasurer Rob Lucas saying that evidence from a former Chairman of the Motor Accident Commission (MAC) confirmed motorists were paying $30 more in CTP premiums as a result of the Government’s decision to privatise MAC.

Mr.Cook told the Statutory Authorities Review Committee that documents existed in Treasury from MAC officers confirming that CTP premiums should have been reduced by $23 in 2015 rather than the Government’s decision to increase them by $7.

Related article

Types of car insurance

4 South Australia Road Statistics

  • As at 31 January 2015, there are 1,050,246 registered passenger vehicles in SA– making up around 78% of all registered vehicles. Motorcycles make up 3.9% of all registered vehicles in SA, with 53,010. (Source: ABS).
  • In 2014, there were 3,991 new CTP claims in South Australia. (Source: SA Department of Planning, Transport and Infrastructure).
  • In 2014, there were 108 fatalities on SA roads and 711 serious injuries. 13 drivers/riders were killed with a blood alcohol concentration above the legal limit. (Source: SA Department of Planning, Transport and Infrastructure).
  • According to a 2014 Canstar Blue survey, 95% of people in SA believe they are a good driver. Only 13% admit to regularly exceeding the speed limit – the lowest rate out of Australia’s five biggest states.

Coming soon, SA Private CTP Providers

As revealed by SA Treasurer Tom Koutsantonis whilst handing down his Mid-Year Budget review, these are the four private CTP providers set to replace the MAC on the 1st of July 2016:

Allianz CTP:

Allianz Australia traces its history back to 1914 when it was known as “The Manufacturers’ Mutual Accident Insurance Association Limited.” In July 2000, it changed its name to Allianz Australia. With over 3 million customers, Allianz are considered to be Australia’s fourth largest general insurer. As well as offering car insurance products, Allianz also offers home, travel, life and business insurance.

Allianz also offers CTP insurance in Queensland and NSW.

AAMI CTP:

AAMI have been around for 40 years, starting out in car insurance. Their brand name is an acronym for Australian Associated Motor Insurers. Their tagline, “Lucky you’re with AAMI” has been used as part of their marketing since 1985. AAMI are a subsidiary of the Suncorp Group, offering car, home, travel, business and life insurance.

AAMI also offers CTP insurance in NSW and the ACT.

SGIC CTP:

SGIC has been providing general insurance products for South Australians since 1971. They began as the “State Government Insurance Commission” and kept the acronym for that name despite being privatised in the late 1990s. In addition to CTP insurance in South Australia, SGIC offers car, home, business and travel insurance. They are a subsidiary of the Insurance Australia Group (IAG) – the largest general insurer in Australia and New Zealand.

QBE CTP:

QBE Insurance began in North Queensland in 1886 as “The North Queensland Insurance Company Limited” (QI). Upon the merging of QI, The Bankers’ and Traders’ Insurance Company and The Equitable Probate and General Insurance Company, QBE Insurance Group Limited was listed on the Australian Stock Exchange in 1973. It has grown to become one of the top 20 insurers worldwide, with offices in 38 countries and over 17,000 staff around the globe.  QBE offers car, home, travel and business insurance.

QBE also offers CTP insurance in NSW and QLD.

Treasurer Koutsantonis also said CTP prices will be fixed to increases of about three per cent per annum for the first three years and affirmed the Transport Department would continue to issue CTP renewal notices.

“Importantly, this model provides a seamless transition for SA motorists,” he said.

In response to the announcement, Allianz Managing Director Niran Peiris said his company were pleased with the South Australian government’s demonstration of trust in Allianz’s capacity to deliver competitive CTP insurance products to South Australian motorists

“Allianz’s existing South Australian CTP claims operation, plus the location of a national insurance sales and claims processing centre in Adelaide is further commitment to our employment in the State,” he said.

“We welcome the opportunity to further strengthen our presence in the State and continue to serve the needs of South Australian motorists and those injured in motor vehicle accidents.

“Allianz’s key focus over the months ahead will be to ensure our future South Australian CTP customers experience a smooth transition to the new Scheme.”

 

CTP doesn’t cover you for damage to other vehicles, your vehicle or property. Consider getting comprehensive car insurance.

 

Compare Comprehensive Car Insurance in SA

Share this article