Changes to Motor Accident Commission at cost to SA rights

20th Jun 2014

Changes to the Motor Accident Commission may rob South Australians injured in motor accidents of adequate support, the Australian Lawyers Alliance said today.

Yesterday, the Treasurer announced in the State Budget that the Motor Accident Commission (MAC) will cease writing CTP insurance policies and will open up CTP insurance to the private insurance sector.

“It is now clear that the CTP reforms that came into effect on 1 July 2013 were to make it more attractive to the private insurers to enter and allow the MAC to exit," said Patrick Boylen, Australian Lawyers Alliance South Australian President.

"This is a reverse Robin Hood exercise, where injured people are being robbed to assist private insurers."

"These changes are expected to generate $1 billion."

"However, half of this will be dedicated to allowing for future road improvements."

"As for the other $500 million, South Australians should question, where will it be spent, and why should those injured on the roads suffer the burden of patching up any holes in Treasury," said Mr Boylen.

“The investments that reside within the MAC are from compulsory third party insurance premiums. They are intended for insurance purposes and should not be paid into the general State Government purse.”

“The Motor Accident Commission funds are intended to provide fair compensation to victims of motor accidents”.

"While reforms slashing South Australians' rights were introduced last year under the justification of providing support for the catastrophically injured, this recent announcement reveals a darker side."

"It appears that the South Australian public have been misled," said Mr Boylen.

Tags: Compensation South Australia Transport accidents