The New Zealand Government is pushing to introduce compulsory third party (CTP) insurance in a bid to stop reckless driving, but the insurance industry has slammed the plans.

Presently New Zealand does not have CTP insurance, but the Government has come under pressure from a taskforce to tighten laws relating to the licensing, purchasing and financing of “high performance” cars for drivers aged under 20.

An illegal car race last week caused the death of a 20-year-old in Mt Maunganui and this has put more pressure on the Government to do something. Transport Safety Minister Harry Duynhoven says requiring CTP insurance for all drivers would have an effect on the behaviour of “boy racers”.

Mr Duynhoven says other countries have less of a problem with street racers because people need insurance to operate a vehicle, and affordable insurance depends on a good driving record.

However, Insurance Council of New Zealand CEO Chris Ryan told Sunrise Exchange News introducing CTP will not stop the street racing culture. “Many of these drivers are often turned down for insurance because they have modifications to their cars, and they also often drive outside the restrictions of their licences.”

Mr Ryan says forcing reckless drivers to have CTP will not fix the problem because problem owners would probably take out insurance initially then not pay the renewals.