A NSW Budget allocation of $169 million listed as “promoting competitiveness and affordability” in the compulsory third party (CTP) insurance market is actually to pay for running the Motor Accidents Authority (MAA).

The budget papers say the money will “promote competitiveness in the compulsory third party market and improve premium-setting to ensure a fair, affordable and viable scheme”.

The MAA is a statutory corporation that regulates the NSW Motor Accidents Scheme. The NSW Government levies CTP premiums to pay for its operation.

Asked how the funding listed in the State Budget will promote competitiveness and affordability, an MAA spokesman told insuranceNEWS.com.au:

“The budget allocation for the MAA in the 2012/13 NSW budget papers relates to the total expenditure of the MAA across all its activities.”

Asked to clarify whether the funding is intended to promote CTP competitiveness and affordability or is in fact the MAA’s total annual expenditure, the spokesman said the figure is the MAA’s operating budget for 2012/13.