RACQ has welcomed the State Government’s review into the Compulsory Third Party (CTP) insurance scheme, with the Club calling for a level playing field.
CEO David Carter said as one of four providers of CTP insurance in Queensland, RACQ had a strong reputation for looking after those injured in road collisions and supporting their recovery.
“The role of CTP in Queensland is essential – it protects motorists and importantly helps those injured on our roads. For the most part the scheme works well, paying for claims, funding rehabilitation, and supporting lifetime care,” Mr Carter said.
“However, as a result of how CTP premiums are collected and distributed across the four insurers in the scheme, an unlevel playing field has been created where some insurers are receiving greater profits despite carrying less risk.
“RACQ has been in discussions with the State Government, calling for a level playing field in the scheme, and we welcome the consultation paper’s inclusion of an option for premium equalisation.”
Mr Carter said RACQ had recommended premium equalisation to the State Government.
“All we are asking is for every dollar of CTP risk we hold in the scheme, we receive the same level of premium, and if an insurer holds less risk, they receive less premium. That’s fair,” he said.
“A change like this would not impact motorists or how much you pay for CTP, nor would it impact any other professionals, including legal and health practitioners, who work in the scheme.”
RACQ will continue to work with the Queensland Government on this important issue and will put forward its submission.