A 50% jump in claims and falling investment income have led Victoria’s Transport Accident Commission to report a $192 million full-year loss.

A 24% rise in the number of advanced brain injuries and quadriplegia have been blamed as the root cause of the annual loss.  CEO Stephen Grant said long-term care that is associated with these types of injuries is now in strategic review. He said the cost of providing attendant care was $4300 per claim per month, up from $3400 two years ago.  

Gross claims rose in 2000-2001 from $630 million to $950 million. The TAC also had more than 1 million HIH shares. 

Despite the loss, eight TAC executives were awarded pay rises in the last financial year.  The wages bill rose $96,000 to more than $1.5 million. A TAC spokeswoman said some executives took on extra responsibilities and other increases are related to inflation.  

Victorian Treasurer John Brumby blames the “volatile investment market” for the fall. He should be worried. Last year the TAC paid a State Government levy of $223.7 million, as well as state taxes of $99.5 million. This year the tax will be $61 million, although the TAC will also have to contribute $40 million towards a long-term road improvement program.

The State Opposition said the TAC’s financial strength is faltering, with its solvency margin dropping to 15.3%, barely meeting the insurers’ benchmark ratio of between 15%-20%.