Why Qld CTP insurers could lift their game on claims

On 1 February 2021, the Motor Accident Injuries Commission (MAIC) in Queensland introduced its first Claims Management Standard. It wants to make the CTP claims process more consistent, transparent and fairer. At the same time, data from MAIC quarterly insights reports will show Qld motorists how well the four insurers perform against this standard.

How long does a claim take?

First, the MAIC wants to improve the average duration of claims resolution. A claim that is legally represented can take up to 30 months to resolve. This is a long time for someone who is physically or mentally suffering.

In the year to 31 March 2021:

  • RACQ had the fastest average at 22 months
  • QBE came second, at 24 months
  • Allianz was slower, at 26 months
  • Suncorp took 30 months to resolve.

Second, the MAIC also sets a benchmark of 60% of CTP premiums to be paid out as claimant benefits. The last 5-year average paid out as benefits exeeded the benchmark by 5%.

Finally, the MAIC wants premiums to be affordable. Premiums are currently $351.80 for 1 July 2021 to 30 September 2021 for each insurer. The Class 1 premium in the first quarter of 2021 was 21.8% of average weekly earnings, which is affordable.

Who makes claims in Qld?

Each year, around 7,500 Queenslanders lodge CTP claims. Nearly three quarters are for a minor injury when two or more drivers were travelling in the same direction.

  • People 26-35 make the most CTP claims
  • People 36-45 make the second most CTP claims
  • Women lodge slightly more than men
  • Crashes in metro areas lead to more lower severity claims than in the regions
  • In the regions there are fewer, but more severe injuries.

There has been a decrease in claims for minor injuries since the new legislation in November 2019 against claims farming.

How do I choose a Qld insurer?

The MAIC provides an online CTP premium calculator to help you choose a CTP insurer. Just enter these four details:

  • Registration due date
  • Class of vehicle, eg, Class 1 is motor car or station wagon
  • Whether or not you claim for GST (input tax credit)
  • Period of registration.

The calculator results also show reasons why you might choose one insurer over another. At the bottom is a button that says “Change to” each CTP insurer.

There has been a general upward trend in switching over the last few years. It will be interesting to see whether the new focus on insurer claims performance will give Queenslanders more reasons to switch CTP insurer.