Road accidents are falling in SA but costs to the state’s compulsory third party (CTP) insurance scheme are increasing rapidly.

Motor Accident Commission CEO Andrew Daniels says the scheme is likely to need premium increases well above the rate of inflation – more than 5% – just to keep going.

The state’s CTP premiums are the most expensive of all Australian jurisdictions, he told a seminar in Adelaide last week.

The cost of metropolitan private passenger vehicle premiums has risen by 5.4% annually over the past 10 years in SA, compared with a 3.8% rise in NSW, 3.9% in Victoria, 0.6% in Queensland and 1% in WA.

Mr Daniels says the costs of running the “at fault” scheme will have to be contained to ensure road trauma victims receive fair and adequate compensation.

He says SA’s claim threshold is significantly lower than in other states and is not geared to promoting the best possible recovery and ongoing care and support outcomes for injured motorists.

The State Government is considering moving to a no-fault scheme and is inviting comment on a green paper outlining the options. These include adding a no-fault component to the scheme, limiting thresholds or switching to a no-fault periodic payment for all injuries.