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Legal group slams SA CTP reforms

The Law Society of SA has criticised the State Government over changes to compulsory third party (CTP) motor insurance.

The legislation was changed last year, extending lifetime care to all sufferers of catastrophic injury, regardless of fault.

But payments were cut for those with less-serious injuries in a bid to make premiums more affordable.

Law Society president Morry Bailes says that since the changes took effect, almost everyone not catastrophically injured is worse off.

He told insuranceNEWS.com.au the Law Society, SA Bar Association and Australian Lawyers Alliance all strongly oppose the reforms and have lobbied the Government.

“We object to the thresholds imposed, the estimated reductions of 20% for every claim for economic loss and the drastic reduction in compensation for non-economic loss.

“We agree with the reforms extending lifetime care to the catastrophically injured, but we strongly disagree with the remaining changes.

“The previous CTP scheme was affordable. The Motor Accident Commission (MAC), which operates the scheme, has been running at a profit in recent years.

“The State Government recently took $100 million from the MAC fund to put into general revenue within weeks of the reforms passing through Parliament.”

State elections will be held next month, and Mr Bailes says it is not too late to adjust the legislation. He says the Opposition is planning to review the entire scheme if it wins the election.