Injured South Australians at risk after MAC CTP claims transferred to Berkshire Hathaway
15th Dec 2018
Plaintiff lawyers in South Australia say the transfer of the Motor Accident Commission’s CTP claims back book has put injured South Australians at risk.
The Australian Lawyers Alliance (ALA) is asking the Government to urgently explain how claims will be managed and what has been put in place to protect injured claimants.
“We are very concerned that people injured in accidents before the MAC was privatised and have CTP claims outstanding may not be fairly compensated,” said Sarah Vinall, State President, Australian Lawyers Alliance.
“The MAC, with the support of the Government, has simply cut these injured South Australians loose.
“It is highly unlikely that Berkshire Hathaway would invest in the Motor Accident Commission unless it believes it can make a profit in doing so.”
The CTP scheme exists to provide people injured in motor vehicle accidents with compensation in accordance with the law. CTP premiums are a compulsory payment that all registered owners of motor vehicles in South Australia must pay to ensure insurance cover for those injured as a result of a driver’s negligence.
“It is difficult to understand how such a system can be regarded as a money-making exercise for a large corporate entity such as Berkshire Hathaway,” said Ms Vinall.
“There are people who have suffered catastrophic and life-changing injuries, including young people, who are relying on our CTP scheme to look after them as it should. Some of these claimants have proceedings currently before the courts that can only be resolved by negotiation or the judgement of a court following a trial.
“It is most concerning that management of these claims is to be handed to a company with no experience in South Australia, and who will be looking to achieve a profit from its investment.”