Queenslanders not protected by current CTP scheme



Leading insurers Suncorp and RACQ have welcomed the Palaszczuk Government’s commitment to crack down on claim farmers targeting the Queensland compulsory third party (CTP) insurance scheme. 

RACQ CEO Insurance John Myler and Suncorp CEO Insurance Gary Dransfield said the announcement that the Government would now introduce legislation to stamp out the predatory behaviour was a win for all Queensland motorists, however it does not go far enough.

“Despite a steady decline in the number of car crashes, we’re seeing a growth in dodgy CTP insurance claims due to an influx of claim farmers and NSW-based lawyers encouraging people to exploit the system to get cash payouts,” Mr Myler said.

“All motorists will eventually pay for this type of rorting through higher premiums.”

While RACQ and Suncorp both supported the move to stamp out claim farming, the insurers agreed this must be followed by additional scheme reform to protect all Queenslanders. 

Mr Dransfield said the only way to really fix the issues within the CTP scheme was to remove the incentives that drive this type of behaviour.

“It’s time for the State Government to introduce defined benefits for minor injuries like whiplash, bringing Queensland into line with other states. This will allow genuine claims to be processed faster and leave the CTP scheme less vulnerable to rorting,” Mr Dransfield said.

“Queenslanders are currently missing out on a fair CTP scheme that covers everyone, regardless of who is at fault in an accident.” 

“While we support an investigation into claim farming, this is a band-aid solution when the entire CTP scheme needs reform in Queensland,” Mr Myler said. 

“The fact is, we need a no-fault scheme like we’ve seen work in other states. Too many Queenslanders have their lives devastated and are left in the cold with no support from the current scheme.”

Both insurers agreed a no-fault, defined-benefits CTP scheme would provide greater certainty for insurers which would help lower premiums and keeps insurer profits in line with community expectations.

Traditionally competitors, the two Queensland insurers first joined forces in 2017 to call on the State Government to protect the interests of all four million Queensland motorists by reforming the current CTP scheme and bringing it into line with the NSW and Victorian schemes.  

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