The National Motor Vehicle Theft Reduction Council (NMVTRC) has announced that it will cease operations on September 30, after the Insurance Council of Australia (ICA) pulled crucial funding.

The NMVTRC was formed in 1999 to push reforms aimed at reducing vehicle thefts across Australia. It says despite progress made, thefts continue to impact communities across the country, including through higher insurance premiums.

ICA has decided not to renew its $1.125 million annual funding agreement which expires on June 30. ICA provided 50% of the group’s funding, with state governments also contributing.

“The ICA’s withdrawal fundamentally impacts the public-private partnership model on which the NMVTRC was founded,” CEO Geoff Hughes said.

“While we have in the past been able to successfully navigate periods of one or more state governments’ non-participation, the withdrawal of the private sector partner (and its 50% share of funding) poses a very different challenge.

“The NMVTRC’s assessment is that it is not sustainable to continue operations beyond September 30 2021.”

Mr Hughes told insuranceNEWS.com.au that insurers have invested $25 million in the scheme since 1999, and theft numbers have fallen 60%.

“We thank insurers for 22 years of collaboration,” he said.

“We are leaving things in not a bad place. There was more to do but it’s [the ICA’s] decision. They were a foundation 50/50 partner and it’s not the same if one of you walks away.”

Mr Hughes says the group will focus on the completion of some key projects including publishing a full analysis of crime data for FY2021, and finding an “appropriate custodian” for 20 years of national vehicle crime data.

“The NMVTRC is proud of its contribution to reducing the economic and social impacts of vehicle crime on the nation and that 2020 saw the lowest vehicle crime volumes in more than 20 years,” he said.

ICA thanked the NMVTRC for its work but says it is aiming to collect a “more comprehensive range of motor vehicle theft data” that goes beyond the group’s remit.

“Through the Insurance Fraud Bureau of Australia, the ICA has established relationships with state and territory law enforcement agencies and will work closely with these agencies to support the identification and enforcement of motor vehicle crime, including insurance fraud and theft,” an ICA spokeswoman said.

“The insurance industry currently shares details on motor vehicle crime and these changes will enable us to target more than motor vehicle theft data, better informing industry and stakeholders of the areas to target in order to combat not just motor vehicle theft but a range of motor vehicle insurance related issues.”