Queensland’s CTP scheme is stable, delivers fair compensation to injured people and should not be changed, despite concerns about RACQ leaving the scheme, says the Australian Lawyers Alliance (ALA).
“We consider the current architecture of the scheme to be solid, affordable and fair. It delivers reasonable compensation to injured motorists and no fundamental change needs to be made to the scheme,” said Ms Sarah Grace, Qld State President, Australian Lawyers Alliance.
“Despite concerns about RACQ leaving the scheme, we do not believe alternate proposals for structuring the scheme would be effective.
“Insurers have left the scheme in the past and we are confident that, if RACQ does withdraw, all the necessary stakeholders would work collaboratively to ensure that no motorist is left without insurance in Queensland.”
The ALA supports greater competition within the current scheme. However, any and all changes must be grounded in evidence and prioritise what is best for Queenslanders. As such, the ALA does not consider that there is any data which suggests that a premium equalisation model is necessary.
Another structure proposed as an option as part of the CTP review was a publicly underwritten model.
“We are opposed to the idea of a publicly underwritten model,” said Ms Grace. “The assessment of ALA members who have had vast experience with CTP schemes in other states is that publicly underwritten schemes tend to be more bureaucratic, less efficient, foster more disputes and grow in size and expense.
“This growth then puts pressure on premiums and can lead governments to restrict common law rights for injured motorists and other injured people in response to the financial pressures on that CTP scheme.”
The Australian Lawyers Alliance is a membership organisation of lawyers who act for individuals who have suffered injuries, including those who have been injured on our roads.
