CTP Scheme (Motor Vehicle Accidents) – a current snap shot

The Motor Accident Insurance Commission (QLD) recently released a ‘CTP Scheme Insights Q1 (Jan-Mar) 2020’ report detailing important performance statistics of the CTP Scheme in the first quarter of 2020.

The interesting takeaways are as follows:

  • When measured as a percentage of average weekly earnings, Queensland has the most affordable CTP premiums in Australia;
  • The efficiency of the scheme has improved with CTP insurance premiums returned as claimant benefits climbing to 66% well exceeding the ‘best practice benchmark’ of 60% and an increase for 5% in the past year;
  • Motor vehicle accident injury claims fell reasonably significantly in Q1 2020 compared to prior years (i.e in the vicinity of 25%);
  • Crashes involving vehicles are most likely to occur between 3pm and 6pm on weekdays. Significantly less crashes occur at night time then during the day;
  • Whilst fewer accidents occur at night time, the proportion of serious accidents occurring at night time is significantly higher than at day time, especially on weekends;
  • The average duration of the claims process for a legally represented claimant varies greatly between insurers with claims against Suncorp and Allianz taking a lot longer on average than claims against RACQ and QBE.

It is clear from the data that the CTP Scheme in Queensland is performing extremely well and deserves its place as the most effective CTP Scheme in the country.

Of course, there are always improvements that can be made. In particular, claim duration averages appear too long, particularly with claims against Suncorp whom have an average claim duration of approximately 27 months.

It is also interesting to note a reasonably significant reduction in motor vehicle accident claims in the January to March 2020 quarter. How much of this relates to COVID-19 restrictions is difficult to ascertain given the majority of restrictions only commenced in early March. A clearer link between declining claim rates and COVID-19 may be able to be assessed once data for the March to June quarter is available.

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