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SA minister defends CTP reform

Reforms to SA’s compulsory third party (CTP) scheme have been vigorously defended by the State Government following criticism from a legal group.

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.

Last week Law Society of SA President Morry Bailes told insuranceNEWS.com.au that since the changes took effect almost everyone not catastrophically injured is worse off.

But the minister responsible for the reforms, Jack Snelling, told insuranceNEWS.com.au the Government has been open and honest about the move.

“We think [the new scheme] is fair but it comes as no surprise to me that some plaintiff lawyers don’t. Fewer compo claims in court means less money in lawyers’ pockets.

“Before the Government’s reforms, our compensation claim rate was 140% higher than Queensland and 64% higher than NSW, even though we have fewer serious injuries per vehicle than those states.

“We made these changes because our CTP scheme was the most unaffordable in the nation and everyone’s motor registration was continuing to rise. Every SA motorist was paying more than they needed to.”