The ACT’s Motor Accident Injuries Scheme is delivering cheaper premiums, broader coverage, and faster support for people injured on Canberra’s roads, new data released from the first year and a half of the scheme suggests.
Motor Accident Injuries Insurance is compulsory for all Canberra drivers when they register a vehicle. It replaced Compulsory Third Party Insurance in February 2020, following ground-up reform of the scheme, to ensure that everyone injured in a motor vehicle accident is protected, regardless of who is at fault.
“Since the ACT moved to a no-fault scheme, we’ve seen great improvements in how this insurance protects and supports injured Canberrans,” said ACT Special Minister of State, Chris Steel.
“Under the old scheme, people often had to go to court and argue for months or years to get a payout to fund their treatment and cover lost income – with limited support in the meantime. Now, Canberrans get access to treatment, care, and payments for lost income much more quickly.”
These days, it usually takes only 13 days after a complete application is lodged for insurers to pay for treatment and care expenses, and 29 days for income replacement payments.
Almost a quarter of applicants who receive these benefits were either at fault for their accident, or fault has not yet been determined.
“This shows the benefit of moving to a no-fault scheme, because it means everyone who pays for an insurance policy is able to access support,” Mr Steel said. “Under the old scheme, these Canberrans would have been left with nothing, even in cases of genuine accidents – like those involving icy roads or animals – where no-one was to blame.”
MAI insurers accept more than 95 per cent of lodged applications.
“These providers are doing the right thing, and providing support when it’s needed,” Mr Steel said.
The new scheme settings have increased the share of total scheme costs directed towards providing treatment, care, and income replacement payments for injured Canberrans.
In the first year and a half, 57 per cent of scheme payments were made for treatment and care, and 33 per cent for income replacement benefits.
Under the previous scheme, significantly lower shares were paid out for treatment and care and income benefits, because a quarter of all payments was directed towards legal and investigation costs.
Premiums have also become more affordable, Mr Steel said. Premiums have reduced from an average of $517 per vehicle before the new scheme took effect to an average of $437 in July 2021 – a saving of around $80, or more than 15 per cent for Canberra drivers.
“The ACT has gone from having the most expensive premiums in the country to being cheaper than NSW,” Mr Steel said.
“Evidence from the first year and a half of the scheme shows the ACT’s Motor Accident Injuries Scheme is achieving the objectives of better supporting Canberrans while delivering a more affordable scheme. This is a great outcome that highlights why the ACT Government pursued ground-up reform.”
