Compulsory Third Party (CTP) Insurance in the ACT

The ACT has compulsory Motor Accident Injuries (MAI) insurance, previously known as CTP insurance. Here’s how it works and a list of providers.

Is MAI insurance compulsory in the ACT?

Yes, if you own a motor vehicle you must purchase personal injury insurance as part of your vehicle registration. In the ACT, insurance is managed by the Motor Accident Injuries (MAI) Commission and it is known as the MAI scheme. This replaced the previous CTP insurance scheme, which was another personal injury insurance scheme.

What does MAI insurance cover in the ACT?

In the ACT, MAI insurance covers everybody who is injured in a motor vehicle accident in the ACT. You may be entitled to receive treatment, care and lost income benefits of up to five years, regardless of who was at fault.

The Commission notes that only personal injuries will be covered. It does not cover damage to your vehicle, other vehicles or property involved in an accident. For this kind of additional cover, you may want to consider the pros and cons of getting a comprehensive car insurance policy.

How does MAI insurance work in the ACT?

The ACT has a ‘no fault’ scheme. This means that if you are injured in a motor accident you will be covered, regardless of who was at fault. This includes the driver who caused the personal injury, as well as injuries to third parties such as other drivers, passengers, pedestrians and cyclists.

Previously, the ACT had an ‘at fault’ CTP insurance scheme and the at fault driver did not receive compensation for any injuries they may have had. This was replaced by the MAI scheme on 1 February, 2020.

Is MAI insurance included in your rego in the ACT?

In the ACT, MAI insurance is included in your vehicle registration fee paid to Access Canberra. When you pay your registration, you can also select your preferred MAI insurance provider.

Who provides MAI insurance in the ACT

There are four insurance companies currently licensed to offer MAI insurance in the ACT:

1. AAMI
2. Apia
3. GIO
4. NRMA

The Commission notes that providers may offer incentives such as cash back, multi-policy discounts or other types of discounts on their products, so it may be worth visiting each provider’s website to see what is on offer.

How much is MAI insurance in the ACT?

MAI insurance premiums are set by and paid to licensed MAI insurance providers. According to the Commission, providers consider the average claim cost, the claim frequency and administration costs, as well as the type and use of the vehicle (private or business) when setting premiums.

For example, from 1 February, 2022, AAMI charges passenger vehicles $437.20 for a 12 month policy, Apia charges $456.20, GIO charges $429.80 and NRMA charges $421.30. These figures are for vehicles not entitled to input tax credit entitlements. Access Canberra can tell you the cheapest total registration fee, inclusive of MAI insurance premiums, government fees and registration fees, at a point in time.

For more information on MAI premiums visit the Commission’s website.

Cover image source:  Yicai/Shutterstock.com.