NRMA Insurance and the ACT Government have gone into arbitration after failing to reach an agreement on new compulsory third party (CTP) premiums.

According to a report in the Canberra Times, the Government is battling an “excessive claim by monopoly insurer NRMA [Insurance]”.

Under the territory’s CTP Act, Under-Treasurer Megan Smithies must either accept or reject a yearly submission from NRMA Insurance regarding its proposed premium charges.

CTP premiums in the ACT are currently at a hefty $526.60, but were unchanged in this year’s budget.

“Any discussions about CTP premiums between NRMA Insurance and the ACT Government are commercial in confidence,” an NRMA Insurance spokesman told insuranceNEWS.com.au.