The most recent update from the Motor Accident Insurance Commission regarding the performance of the Compulsory Third Party Scheme reveals:
CTP premium breakdown
Queenslanders have the most affordable CTP insurance premiums in mainland Australia which is important when there is a cost-of-living crisis.
The total CTP premium has remained unchanged over the past five quarters.
We think this is a significant achievement and reflects a scheme which is very well managed by the MAIC.
Sometime when there is a change of Government, a prospective incoming conservative government has looked at the CTP compensation scheme a vote winner by promoting legislative changes to the scheme also known as ‘tort reform’ which results in injured people receiving less or nothing for their injuries from car accidents.
We think the data released by the MAIC provides no justification whatsoever for any changes to the CTP scheme in terms of the reduction of compensation payable to injured people or their dependents.
New Claims
The number of new CTP claims decreased slightly in the October to December 2024 period compared with the previous quarter.
Claimants claiming directly with insurers
The percentage of claimants lodging their claims directly with insurers continues to steadily increase in relation to the same quarter last year.
We think this is a concerning trend because we know that when injured people claim directly with insurers they recover less compensation plus the CTP insurers are in a clear position of conflict of interest when dealing with injured people directly.
We know of one particular CTP Insurer, Suncorp Insurance, who has been advertising on Google for injured people to claim with them directly as part of their ‘concierge service’ without explaining that people claiming directly should seek independent legal advice or that Suncorp are in a conflict of interest position.
It is not explained in Suncorp’s marketing material that people claiming directly are likely to receive less or significantly less ‘in their hand’ if they claim directly as compared with retaining a lawyer with expertise in personal injury law.
We think all claimants should receive a fair go and proper compensation.
Historically, the statistics revealed that people who claimed directly with CTP insurers would recover about $10k while those with legal representation would recover something like 80k to 100k.
Current data published by the MAIC reveals that the average claim is about 130k when averaged across all claims and claim types.
As most or all law firms who practise in personal injury law offer a free case assessment, we would encourage any claimant or potential claimant to seek independent legal advice from a law firm with expertise in this area before they approach any CTP insurer directly. The CTP insurers has no duty of care or obligation to ensure that the settlement outcome is fair or reasonable. The CTP insurers always do what is their best interests which is opposite to what is the best interests of the injured person. This is not explained by Suncorp Insurance in their marketing to direct claimants either. We think this is wrong.
CTP Insurers
Since the exit of RACQ from the CTP industry, the remaining CTP insurers are Suncorp (the biggest) followed by Allianz and then QBE.
New Registrations through motor dealers
The data released by the MAIC reveals that Suncorp has the highest proportion of new business followed by Allianz and then QBE although Suncorp’s portion of the market has slightly decreased with Allianz and QBE both increasing.
It pays to shop around. We encourage all consumers to check and make an informed decision as motor dealers may or will receive a financial benefit from your decision.
Legally-represented claimants – average claim duration
From notification to settlement, Suncorp is the longest followed closely by Allianz with QBE being the best or quickest.
It is interesting how the biggest CTP insurer is the slowest with the smallest being the most efficient or quickest.
Suncorp is about 25 months. QBE is about 20 months.
Direct Claimants – average claim duration
Suncorp is quickest at about 5 months.
Allianz is the slowest at about 9.5 months.
It is worth noting that most injuries of any significance take about 9 to 12 months to stabilize or reach maximum medical improvement yet Suncorp is resolving matters in about 5 months.
While speed and efficiency is a good thing, we think there is no way that an injured person can appropriately settle or resolve their cases within 6 months of the date of an accident when all of the responsible expert medical evidence is that injuries from a motor vehicle accident typically take about 9 to 12 months before you will have a definitive and conclusive opinion regarding diagnosis, prognosis and the assessment of any permanent impairment.
What this data reveals is that Suncorp is slow to settle claims with legal representation and very quick to settle claims with claimant’s directly and earlier than when it would reasonable and sensible to resolve a claim if the injuries are of any significance.
