Compulsory third party for riders, not motorbikes

Steve Pearce chairman of the Motorcycle Council of NSW Look for motorcyclists in Motorcycle Awareness Month roadside assist ignores compulsory

Riders should pay compulsory third party (CTP) insurance only once for themselves, not for each motorcycle they own, says the Motorcycle Council of NSW Chairman Steve Pearce (above).

He says it is the rider that is the insurance risk, not the motorcycle.

“If you buy a motorcycle, the insurance risk is based on you and your experience, skill, where you live, etc,” Steve says.

“If you then sell the bike, why should the risk be the same for the new owner who lives in a different place and has different riding skills and experience?”

Steve says the government would never let go of the revenue from registration for each vehicle, but it would be the fat-cat insurance companies that would miss our on revenue under his rider-based compulsory third party scheme.

“The insurance companies are getting rich off our CTP and it’s a rort,” he says.

“They know they are on a good thing with CTP because only 5% of all registered vehicles are on the road at any one time.

“So 95% of vehicles are in garages or on the side of the road, but still paying for CTP.

“Insurance companies are only at risk at 5% of the time which is where their profits are coming from.

“Riders are paying premiums for services when they are not at risk.”

Steve would like to see Australia move to an American system where the rider insures themselves rather than the vehicle.

“That takes all this nonsense of every vehicle having an insurance for risk whether it used or not.

“It’s a better way to measure risk as well.”Melting tar claims first crash victim Mt Glorious costly engineers events steal reservations bitumen compulsory

Rider’s view

Ron Germain says he had a motorcycle accident near Ashford in NSW in August 2018 after hitting a huge bump in the road.

“It forced me off the road and I hit a culvert and a tree, breaking ribs and pelvis, etc and wiping out my bike,” Ron says.

“I was told to apply on third-party insurance for pain and injury. However, I was subsequently told by a high-profile law firm in NSW that I have no third-party claim against the NSW government as they (the government) were no longer allowing claims for injuries caused by bad road maintenance.

Insurance review

Steve says there needs to be a review of the insurance industry along the lines of the banking industry inquiry.

“I don’t know how we terminate it,” he says.

“We need wholesale government support, but I fear the insurance lobby is too big and too rich for us to win.”

The NSW Labor opposition has promised a review of the motor accident and workers compensation schemes.

12 Comments

  1. CTP should be linked to drivers licence as a 1 off annual premium, obviously the premium may need to be a little higher than the typical current single vehicle premium so as not to overly disadvantage the insurance industry. The economy would benefit overall as I believe more people would be prepared to purchase an additional vehicle perhaps even a motorcycle.

  2. This IS NOT a Political advertisement in any shape or form.
    No only are CTP insurers getting rich. The level of cover is less now than it was just two years ago. The insurers get out of even trying to get you back to pre-injury condition.

    Some years ago when a LIBERAL STATE Government “Deregulated the CTP Insurance” we were told Policies will be cheaper due to competition. The level of cover will not be reduced. All users will benefit.

    That has not been the case in any deregulated industry like the “Deregulated the CTP Insurance”, the “Deregulated Electricity” the “Deregulated the Milk industry” we know how bad it is for Dairy, Beef, Pork, Lamb Wheat Apples Oranges and several other industry sectors.
    Each and every industry that has been “Deregulated” has been done by a Liberal Government.

    When the NSW Government had CTP Insurance that had “X” number of employees all getting wages, supplied with Tea & Coffee, toilets and a computer on their desk and all the other things an employee would need to do their work and when you purchased a CTP Policiy the price had to cover all the employees cost to the business and the cost to injured Riders and Drivers in NSW.
    Now we have six or a dozen CTP Insurers and our policies still have to cover all the employees cost to the business and a cost of reduced benefit to injured Riders and Drivers in NSW and pay shareholders as well as (it seems) top heavy management of six or a dozen CTP Insurance companies.
    But CTP Policies will be cheaper due to competition. I trust them not to keep putting up prices and reducing benefits to injured motorists & so should you & as soon as my flock of flying pigs come back prices of CTP Insurance policies will go down, mark my words.

  3. my mate from Canada says, he has 5 bikes over 20years old, only pays one insurance and rego, as long as they are all listed under the one number plate he can swap from bike to bike

  4. Like Everything ELSE the Politicians PROMISE before Election Time – Nothing will come of it …
    But IT NEEDS TO BE DONE here in Australia as these Insurance companies are like LEACHES, they are Bleeding US the Registered Owners of these Vehicles we NEED to Have IF we are to get around in Australia, Especially those who live in RURAL Australia … We have very little in the way of Public Transport.

    An Australian Licence and National Road RUlES and Laws are Needed as well …

  5. My mates are sick of my saying the very same thing.

    I can not afford to own more than one fully registered road bike because of the Greenslip and associated on road costs.
    I do however own a bike that i have recently restored. A 1981 Suzuki GS1000G
    It qualifies for Vintage registration in N.S.W as it is now 37 years old. This comes with a limited number of days i can ride it, which would amount to around 66 days per year.
    A lot of bikers are lucky if they get to ride their bikes every weekend, i also ride a BMW R1200GS every day of the week, and that costs me a minimum of $1400 per year, just to have it sitting in the garage, so i use it as much as i can. That’s $3.83 per day
    The old suzuki costs me $90 a year on Vintage plates, plus a membership of a Vintage motorcycle club of $45. That’s $2.19 Per day
    Such a huge disparity, but the point is, i can only ride them one at a time, The risk on the highway is just the same.
    Yet both bikes are worth almost the same in dollar value, and would cost roughly the same to repair if i was ever in an accident
    One has A.B.S, Traction Control, Stability Control, and all the Bells and Whistles.
    The other has 37 year old brakes and suspension, yet it is cheaper to put on the road.
    The only constant is me, the rider. Same experience, same age etc.
    Riding for 45 years, no accidents, no claims.
    I get no discount by having Fully comprehensive insurance on either bike on my Green Slip costs.
    This system needs overhauling as soon as possible.
    By making the on road costs cheaper, It may even drive up bike sales, and with it an increase in employment by the motorcycle dealers , and all the other knock on benefits.

    1. Graham, dunno if your comment about ” both bikes are worth almost the same in dollar value” holds water, but I agree with your other comments

      1. Same value almost to the dollar. The Suzuki cost me 7K in parts alone, so it is probably worth more than my BMW.
        The Suzuki will increase in value every year, while the BMW will only ever go down

  6. We really need to have a huge vocal protest meeting about this subject. It should include car drivers and motorcyclists to let the government and the insurance companies know how pissed off we are. I’ve been complaining about this for years to anyone who would listen. Australians, regrettably, are too lethargic and the government (NSW in my case), which used to run the compulsory third party (CTP) scheme and sold it on it’s current rip-off basis to the independent insurance companies, did it with the full knowledge that they were screwing us blind. Wake up Australia!

  7. If you are retired you are paying money for nothing. About 18 mths ago is forced into the Armco steel railing by an elderly uninsured driver. On body was charged as a result, as the Police claimed there where no specific witnesses. As a result of the accident my left foot was completely shattered and required a3 hr operation to repair it and a further 2 operations to remove bits of ‘internal hardware’ holding it together. As I did not realise you only have 2 weeks to lodge a third party insurance claim, I had to lodge my claim with a solicitor. The final outcome was under the current NSW legislation, I was not entitled to compensation for loss of income as I was retired, no medical expenses as the operations I needed had already been performed by the time the insurance company had stuffed about, I was however entitled to $5000 compensation for my permanent limp and restricted movement. But and here is the but, as the Police had not charged the driver and had not fully investigated the accident, I would be required to speed $30,000 + on an independent investigation into the accident in order to get my $5000 compensation. This HWY Robbery in the highest degree!

  8. Opt out. Get into another sport (say, e-mtb) where you can decide your own level of insurance cover.
    The present model spreads the cost by vehical. Changing to division by person clearly changes the compromise in favor of those wealthy enough to own multiple vehicals. So, net gain for the well heeled, net loss for the less well off, typically younger riders. Unless you imagine the big end of town is actually going to take less money overall? LOL.
    A fair division would have risk associated with actual data, collected from transponders attached to each person, allowing behaviuor monitoring, actual usage etc to determine actual risk, and assessing cost accordingly. Or least according to a formula developed by a faceless bureaucrat. A variant of this is on the way already, yay for us…
    A useful side effect would allow the government of the day (and clever hackers) to check we are attending proscribed religious services and the like.
    Even fairer would be no insurance at all. Ulimate user pays. Well, Ulimate litigation opportunity anyway.
    IMO, changing the compromise won’t make everyone happy, and risks alienating new riders by increasing individual cost, even more than they presently are.
    So, opt out. Choose another sport, loads and loads of others are. Just look at the slow motion crash in bike sales.

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