Treasurer and Minister for Employment and Economic Development Andrew Fraser has announced that Queensland motorists will save more than $20 a year on their Compulsory Third Party Insurance (CTP) following reforms implemented by the Bligh Government.
As part of the 2010-2011 State Budget Mr Fraser said a review into the CTP scheme has been completed: “We understand that for Queensland families doing it tough, every dollar counts. We made a commitment to reduce motorists’ costs any way we can, which is why we have looked at how the CTP scheme operates and how we can reform it. These reforms represent a real saving for motorists – to the tune of more than $20 a year.”
Mr Fraser said the reforms include removing the payment of commissions and other forms of inducements under Queensland’s CTP scheme. A number of CTP insurers pay motor vehicle dealers and others commissions on what is a compulsory product. These costs are ultimately borne by motor vehicle owners in the insurers’ premium pricing.
“The Government will legislate to ban the payment of commissions associated with CTP insurance effective from 1 October this year. We will also look at other changes to ensure that these costs do not emerge in other forms.”
Mr Fraser said that from 1 October this year, the Government will also remove the $4 HIH surcharge included with the Nominal Defendant levy forming part of the CTP insurance cost at registration renewal. The CTP premium is determined by insurers each quarter within a range set by the independent regulator. The reforms will lower the price ceiling by $24 from 1 October 2010. The current price available for CTP for a privately owned car or station wagon premium ceiling is $347.
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