How is the scheme funded
How is the Lifetime Care and Support Scheme funded? How much will I have to pay for the Scheme?
The Scheme is funded by a levy which has been set by the ACT Lifetime Care and Support Commissioner. The levy applies to all compulsory third-party insurance policies and appears on motor vehicle registration notices for registration periods that commence on or after 1 July 2014.
The amount of the levy is:
- $35 for a 12 month CTP policy.
- $17.50 for a 6 month CTP policy
- $8.70 for a 3 month CTP policy
It is payable at the time of registration of the vehicle.
A LTCS levy applies to CTP policies for vintage vehicles that are registered under the ACT’s Concessional Vintage Vehicle Registration Scheme. The concessional levy is based on the distance restrictions applicable under the scheme. The amount of the levy is $7 for a 12 month CTP policy.
Will the Lifetime Care and Support levy reduce my CTP premium?
In the long-term the scheme is providing downwards pressure on compulsory third-party insurance premiums as it removes some claims’ risk that is presently covered by CTP insurance. Licensed CTP insurers are responsible for setting their own premiums and are aware of the scheme.
The LTCS scheme though extends insurance coverage for catastrophic injuries beyond what was covered by CTP insurance premiums to include those persons who may be considered to be at-fault, or someone who is involved in a single vehicle accident, or even a blameless accident.