Review of the MAI scheme


Since February 2020, Canberrans have had a new, no-fault system of CTP called Motor Accident Injury (MAI) insurance. The MAI scheme must be reviewed every 3 years to see if it is working as it should. In fact, the scheme has become more competitive and MAI premiums have fallen.

MAI premiums are lower

On 30 June 2023, the average MAI premium for a passenger car in the ACT was $405.68.

  • This is $53 or 12% less than the February 2020 premium of $458.30.
  • Affordability increased from 25% to 20% of average weekly earnings.
  • At the same time, the CPI increased by 15%.

Forecast premiums for the new scheme were $385 to $465.

Who is using the MAI scheme?

Some 1,423 people have applied for benefits under the MAI scheme and 97% of claims were accepted:

  • 60% were drivers
  • 17% were passengers
  • The largest group by age was 25 to 39 year olds.

The most common injury was to the spine. Even so, most injuries were later classified as minor.

Speed of payments

The speed of treatment and care payments and income replacement benefits is a sign of how well the scheme is working:

  • 80% receive their first treatment and care payment within 4 weeks.
  • The median number of days to the first payment is 12 days.
  • 23% receive their first income replacement payment within 2 weeks.
  • Half receive their first payment within 4 weeks.

Market share fluctuates

Market share has fluctuated in the new MAI scheme because of competition between the insurers:

  • In February 2020, NRMA Insurance had 61.7% market share and Suncorp (AAMI, APIA and GIO) had 38.3%.
  • In 2021-22 and 2022-23, NRMA Insurance maintained a market share of over 55%.

NRMA Insurance and GIO appear to compete closely on price.

Price matters the most

It looks as though Canberrans decide which MAI insurer they will choose based on price. Price appears to be more important than reputaon, brand loyalty or any incenves insurers offer.

Motorists are responding to even small reducons in MAI premiums by switching insurers. According to Finity, these reductions in premiums are mainly because of competition in the scheme.

Compare ACT MAI premiums here.