CTP review must happen before MAC privatisation

8th Dec 2015

The SA Law Society and Australian Lawyers Alliance (ALA) have expressed grave concern that next year’s compulsory review of the CTP scheme will be a meaningless exercise unless it is conducted before the planned privatisation of the CTP scheme.

In evidence given to the Statutory Authorities Review Committee inquiry into the Motor Accident Commission yesterday, Law Society immediate past President Morry Bailes, ALA SA Branch President Patrick Boylen and former ALA National President Tony Kerin all gave evidence that it was essential that a statutory review into the CTP scheme be finalised so that the scheme’s impact on road victims can be assessed before it is opened up to the private market.

Changes to CTP scheme, in which the entitlements of motor accident victims were drastically reduced, came into effect on 1 July 2013, and a statutory review of the CTP scheme to take place on 1 July 2016 was written into the legislation.

“The government’s plans to privatise CTP on the same day as the commencement of the statutory review would make the review a hollow exercise,” Mr Bailes said.

The Law Society and ALA believe that any chance of restoring victims’ rights to fair compensation would be impossible if the privatisation occurred concurrently.

“The common sense approach would be to conduct a proper review into the impact of the CTP scheme on injured motorists, have a public debate about the fairness of the scheme, and action any recommendations that arise out of the review before putting CTP insurance in the hands of private companies,” Mr Bailes said.

“South Australian motorists pay their premiums for the purpose of compensating injured motorists who aren’t at fault. They should be made fully aware how their money is being spent.”

Tags: South Australia CTP