NT’s Country Liberal Opposition is causing a stir by suggesting motor insurance premiums in the territory will skyrocket due to the financial crisis.

Opposition Treasury spokesman John Elferink says there is a risk that government-owned insurer TIO will have to increase premiums for third party insurance because of the collapse in the stock market.

He says until now the motor accident compensation scheme has been able to suppress costs by putting extra cash in shares but will now struggle to do that.

A spokesman for the NT Government told insuranceNEWS.com.au it will not pre-empt the recommendation or determination of the CTP scheme’s independent commissioner.

“The motor accident compensation scheme premiums are reviewed annually and the next review is not due until early next year,” he said.