Your CTP insurance premium is paid as part of your motor vehicle registration. The CTP insurance premium consists of the CTP Insurer component and an administration component. The administration component funds services that support the CTP scheme including road safety initiatives, health and emergency services and the Regulator’s office.
How are CTP Premiums set?
The Regulator is responsible for determining CTP insurance premiums under the Compulsory Third Party Insurance Regulation Act 2016 (CTPIR Act).
During the transition period from 1 July 2016 to 30 June 2019, annual premium increases are in line with the contractual agreement between the CTP insurers and the government. During this period, CTP premiums will increase by 3% per annum.
This was designed to ensure a smooth transition for both CTP insurers and motorists ahead of CTP price competition for policies due on or after 1 July 2019.
You can find the current CTP premiums in the 2018-19 premium schedule.
What will happen to premiums after 1 July 2019?
The premium setting process will be undertaken by the Regulator with independent actuarial advice. Premiums will be determined by the Regulator based on the Scheme experience. Primarily, premiums are driven by the number of claims and the cost of the claims projected for each accident year.