Third-Party Insurance Reform

The Road Transport (Third-Party Insurance) Amendment Bill 2011 (the CTP Bill) has two main objectives:

·               better health outcomes for those injured in road crashes; and

·               reduced cost to the community of CTP premiums.

The changes proposed to awards for non‑economic losses are designed to meet those objectives by encouraging those suffering relatively minor injuries to seek early treatment and rehabilitation.

The Bill builds on the previous reforms established under the 2008 CTP Act to encourage early treatment and provide more rigour around award payments.

There is overwhelming evidence that early access to treatment after accidents improves health outcomes, with quicker recovery.

Quality of life is improved, and it is improved more quickly – I think we can all agree this is a worthy outcome.

Early treatment benefits individuals and the community, through lower medical costs and increased productivity.

These are highly desirable policy objectives in their own right. 

And motorists will benefit though reduced insurance costs.

The current system unfortunately provides incentives towards maximizing lump sum payments and away from rehabilitation.

At its most basic, the current scheme trades money for quality of life –the Government wants this to change.

Injured Canberrans deserve better than a system that prolongs their waiting.

They deserve a system that emphasizes the rehabilitation and restored quality of life, and appropriate compensation.

And ACT households and businesses deserve better than a system that practically guarantees the highest insurance premiums in the country.  They deserve relief from these cost pressures.