Insurers AAMI, Allianz, QBE and SGIC provide compulsory third party insurance in South Australia. Before July 2016, the Motor Accident Commission (MAC) was regulator and insurer of the CTP scheme. Now the government will abolish the MAC and other government agencies will handle its road safety role.
Roles of the MAC
The MAC currently sets all premiums applying from July 2016. It also manages claims for accidents that happened before June 2016. It will oversee the four private CTP insurers until July 2019 when the scheme opens up to other insurers. The MAC is also well known for road safety and provides funding for research, projects and advertising campaigns such as Creeper.
After July 2019, the MAC will stop setting premiums and process a steadily decreasing backlog of claims. The SA government will transfer its role in road safety to Department of Planning, Transport and Infrastructure, Office for Recreation and Sport or SA Police. This could save $2 to $3 million in costs. The MAC will then be abolished.
Private insurers have an interest in promoting road safety in the state, as it reduces claims from accidents and claim costs. QBE, for example, launched its own Safer Roads Campaign. Other insurers may well invest in promoting road safety.
Nobody has said who will act as regulator of the insurers and the SA CTP scheme.
Sale of Motor Vehicle Registry
In August 2017, the SA government sold Land Titles Office to a private consortium, Land Services SA (LSSA) for $1.6 billion. Macquarie Infrastructure and Real Assets and Public Sector Pension Investment Board (Canada) own LSSA. It will hold information for the next 40 years about who owns property, when it was purchased and its valuation. It also has the right to commercialise related data, with government approval.
Land Service SA paid another $80 million for the “exclusive right” to negotiate to buy more, such as the Motor Vehicle Registry.
The SA government must enter an agreement to privatise Motor Vehicle Registry before 12 October 2020. If not, it must repay $80 million plus 10% interest per annum or grant Land Service SA another seven years of the Land Titles Office.
Nobody has said whether LSSA will have a similar right to commercialise data from Motor Vehicle Registry.