Premiums for the Motor Accident Injuries (MAI) scheme are subject to government regulation to ensure that they can cover our community’s needs.
The premiums are set by and paid to a licensed private sector MAI insurer.
When setting premiums insurers consider the estimated claims cost for the year (the average claim cost), the estimated number of claims (claim frequency), and administration costs. Other factors considered when calculating premiums are the type and use (private or business) of the vehicle.
The ACT’s MAI scheme is a ‘community rated’ scheme, where motorists in each vehicle class pay the same premium regardless of their individual circumstances and risk of being involved in an accident. ‘Community rated’ schemes provide equality and affordability, and reduce the cost of compulsory personal injury insurance for drivers with differing circumstances (such as young and older drivers).
Prior to the Citizen’s Jury process that led to the development of the MAI scheme, the Government made a commitment that premiums for all vehicle classes will not increase as a result of the commencement of the new MAI scheme. For motorcyclists, who are expected to have more and higher cost claims than drivers under the new scheme, premium affordability has been maintained through a subsidy from other vehicle classes that is reflected in premiums.
Your Motor Accident Injuries policy
On 1 February 2020, your existing CTP insurance policy will become a MAI policy and you will be automatically covered under the new scheme. You do not need to cancel or do anything with your CTP policy.
You will see the new MAI premium reflected in your registration renewal notice when your registration becomes due.
You can find information on current and previous CTP premiums on the CTP website.