Queensland CTP scheme is under review

car accidents

The Queensland regulator, MAIC, has just reviewed the CTP insurance scheme in Qld and made some recommendations. The point of the review was to see if the scheme could be more affordable, efficient and fairer. It examined, for example, premium prices, legal fees, ridesharing and insurer profits.

Insurer profit

Insurers made profits of 25-31% during the last 5 years, more than three times the 8% they quote to the regulator.

Premium prices have been rising quickly. The cost of registration in 2015 increased by twice the rate of inflation. Meanwhile, owners had to pay an extra $60 a year to cover the National Injury Insurance Scheme, introduced from 1 July 2016.

Already, there are 2.7 million vehicles in Qld and each owner currently pays around $368.60 for registration.


Committee recommendations leave many aspects of the CTP scheme unchanged, including:

  • Private insurers provide for this mandatory public scheme
  • Maintain risk rating system using vehicle class
  • Pay CTP at the same time as registration
  • Retain the way Nominal Defendant works.


In summary, the review makes these recommendations for change:

  • Move the CTP renewal process online to reduce costs
  • Make people more aware they can change CTP insurer at vehicle registration or purchase
  • Address insurer super profits
  • Introduce voluntary legal fee reporting
  • Strengthen insurer performance monitoring, benchmarking and reporting
  • Focus on efficiency and motorist and claimant satisfaction, not just affordability, in scheme performance.

What does it mean?

What does this review mean for Qld motorists? At this stage, it is difficult to say since the committee has made recommendations only.

It appears moving the CTP renewal process online will make the most immediate difference to vehicle owners.

Find more about CTP Insurance Qld.