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WA considers move to no-fault motor cover

The WA Government has issued a green paper proposing the state’s compulsory third party insurance scheme move to a no-fault basis.

About 92 people are catastrophically injured in motor vehicles in WA each year, and about 44 get no compensation because they cannot assert fault against another driver.

The average premium of $291 for a family car would rise by $109 including GST and duty if all catastrophically injured people are covered, or by $101 a year if only people currently without cover are included.

Last financial year 44 catastrophic injury claims were settled for $261 million, accounting for about one-third of claims costs.

The Insurance Commission of WA, which underwrites and administers the scheme, received 3561 new claims and paid out $494 million.

Other states except Queensland have no-fault schemes. In July SA implemented a no-fault scheme for catastrophic injury.

Public consultation on the WA green paper is open until December 24.