Queensland’s compulsory third party (CTP) scheme was introduced in 1936. Since then, there have been four big changes, including last year’s criminalisation of claim farming. However, many people do not understand how it works. RACQ launched ReThink CTP in 2019 and in 2020 funded a citizens jury to make recommendations to improve the scheme.
Over 90% of the jury supported these five recommendations for change:
- Improve MAIC transparency and accountability. Report a complete breakdown of all settlements, including legal costs
- Remove opportunities to profiteer from the scheme. Insurers make up to 19% profit but MAIC quotes 10-12% as acceptable
- Improve CTP awareness and ability to use the scheme. Include information with licence renewal
- Expand the types of vehicles registered and covered. For all motorised vehicles that exceed a certain speed
- Make more money accessible to claimants. Defined schedule of fees and reimburse out-of-pocket costs for rural claimants.
The jury made other recommendations to keep things the same: affordability, access to common law, government oversight and the compulsory nature of the scheme.
Motor Accident Insurance Commission (MAIC), insurers Allianz and QBE and practising Queensland lawyers chose not to take part.
RACQ will distribute the jury’s report to MAIC, other government entities and political parties. Nobody knows whether or not these recommendations will be accepted. It potentially conflicts with the MAIC 2019 Scheme Insights Report, which said the Qld common law CTP scheme is working well.
That report also noted 61% of premiums are spent on claimant benefits.