The ACT Government says changes to its new compulsory third party (CTP) legislation will “reduce third party insurance premiums” and lead to cheaper car registration in the territory.

The Government amended its draft compulsory third party legislation after consultation with motoring groups, the community sector, insurers and lawyers.

In the updated bill, pain and suffering damages are uncapped and the physical and psychological whole person impairment has been adjusted to 15%. The amendments will be reviewed in five years.

Treasurer Katy Gallagher says the draft Road Transport (Third-Party Insurance) Amendment Bill 2011 has met with “broad support”.

“The research done in preparation for this bill indicates that these amendments will reduce third party insurance premiums,” she said. “These lower premiums will assist families by reducing costs through their annual renewal of their car registration.”

Ms Gallagher says the bill will establish a modern, evidence-based statutory entitlement process replacing damages in the case of relatively minor injury, and aims to ensure transparency in the awarding of damages for crash claims.

“Claimants with relatively minor injuries (the majority of claimants) will now be able to recover fully by initiating treatment early,” she said. “These amendments will remove a significant source of upward pressure on premiums and enable scheme funds to be redirected to where they are needed the most – to returning motor crash victims to a state of health and well-being as far as is humanly possible.”

The bill was introduced in the ACT Legislative Assembly last Thursday.