CTP insurance is designed to cover the cost of compensation claims made against a driver if they kill or injure someone in a car accident. Here’s how CTP insurance works in South Australia.
How does CTP work in SA?
Compulsory third party insurance (CTP) in South Australia is managed by the Motor Accident Commission (MAC). CTP in SA has been privatised since 1 July 2016, meaning drivers can choose their own CTP insurance provider; previously, the MAC was government-owned and was the sole provider of CTP insurance in the state.
Since its privatisation in 2016, MAC now functions as the State’s Nominal Defendant, acting as an ‘insurer of last resort’. This ensures that people injured by a vehicle that is unregistered, uninsured, or unidentified can still receive compensation.
The SA CTP Insurance Regulator is a government body that carries out the monitoring and reporting of CTP insurers in South Australia, with the goal of maintaining a “fair and affordable” CTP insurance scheme, and ensuring that Scheme outcomes for the injured continue to improve.
In addition to this change, SA’s CTP scheme has had other major reforms in recent years. The new CTP scheme provides lifetime treatment, care and support to those who suffer very serious injuries from accidents on SA roads, regardless of the cause or fault.
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 became a quadriplegic after hitting a kangaroo wouldn’t have been eligible for a claim.
The decision to privatise the Motor Accident Commission in 2015 was not a decision without dispute. Shadow State Treasurer Rob Lucas stated that evidence from a former chairman of 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.
South Australia road statistics
Wondering why CTP is compulsory? Read the following road statistics from SA:
- As at 31 January 2016, there are 1,061,776 registered passenger vehicles in SA – making up around 78% of all registered vehicles in the state (ABS).
- Motorcycles make up around 4% of all registered vehicles in SA, with 53,724 bikes on the road in 2016 (ABS).
- In 2015, there were 3,543 new CTP claims in South Australia (SA Department of Planning, Transport and Infrastructure).
- In 2016, there were 86 fatalities on SA roads and 692 serious injuries. 49 drivers and riders were killed with a blood alcohol concentration above the legal limit (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.
South Australia’s CTP insurance providers
These are the private insurance providers currently licensed to offer CTP insurance in South Australia at the time of writing, listed in alphabetical order:
AAMI has been around for 40 years, starting out in car insurance, and is a subsidiary of the Suncorp Group. 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 offers CTP insurance in the ACT, NSW, and South Australia.
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.
Allianz offers CTP insurance in NSW (known as Allianz Green Slip insurance), Queensland, and South Australia.
QBE Insurance began in North Queensland in 1886 as the North Queensland Insurance Company Limited (QI). Following the merger 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 since 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 offers CTP insurance in NSW, Queensland, and South Australia.
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. They are a subsidiary of the Insurance Australia Group (IAG) – the largest general insurer in Australia and New Zealand.
In addition to CTP insurance in South Australia, SGIC offers car insurance, home and contents insurance, travel insurance, and business insurance. You can compare these products from SGIC on the Canstar website.
Car insurance for SA drivers
CTP doesn’t cover you for damage to other vehicles or other people’s property, or damage to your vehicle caused by an accident or other causes such as fire, flood, or storm, so make sure you consider the pros and cons of getting comprehensive car insurance.