Premiums will be cut on SA’s compulsory third party (CTP) scheme from July 1, under legislative changes introduced last week.

Motorists are expected to save about $145 over the next two years.

More people who are seriously hurt in accidents will also be covered with the launch on July 1 next year of a no-fault care scheme for catastrophic injury.

“People who currently are not covered by CTP insurance when they suffer catastrophic injuries in single-vehicle accidents will be covered,” Premier Jay Weatherill said.

“At the moment that is about 40% of catastrophically injured road accident victims each year, who are not covered because there is no one at fault.”

Injury thresholds will be lowered but costs will not be recoverable for claims below $25,000 – a change to the draft legislation figure of $30,000.

Figures from the state’s CTP insurer, the Motor Accident Commission, show the current fault-based scheme has paid more than $100 million a year, with many compensation payments going to claimants who require little or no time off work and minimal medical treatment.

Under the changes, the medical costs and care of drunk and dangerous drivers will be covered, but they will not be able to recover financial compensation.

Other reforms include a new act for the lifetime support scheme – for people catastrophically hurt in accidents – and amendments to the Civil Liability Act and Motor Vehicles Act.