Rider CTP premiums may drop

insurance claim

Welcome changes to CTP in NSW may result in a drop in premiums in the future, says former Motorcycle Council of NSW chairman Christopher “CJ” Burns.

This comes as the Victorian Motorcycle Safety Levy is to continue to rise and Queensland riders are best off with rego.

The MCC-NSW launched a campaign last year against NSW Government proposed changes to compulsory third party insurance that would make it more difficult to access compensation.

CJ says the campaign was “short and sharp” and “not without its fair share of dirty tricks and politics”.

After several changes to the proposal which come into effect from December 2017, CJ says the new legislation is a win for all motorists.

MCC NSW chairman Christopher CJ Burns CTP
MCC NSW chairman Christopher CJ Burns

“The biggest wins here are that all injured parties can claim and then receive payments straight away,” he says.

“Essentially the Accident Notification Form (ANF) payment has been increased which is something the MCC had lobbied for all along. The argument proposed by the MCC that all insurance companies could start making payments straight away, if they choose to, was listened to and implemented.”

He says car drivers will see a reduction in CTP premiums of about $100 a year while riders get the added protection of the increased ANF and payments starting straight away.

However, due to the forecast number of ANF claims for riders, CJ does not expect an immediate decrease in CTP costs.

“But this is not to say it will not happen in the future,” he says.

CJ has called on all riders and drivers to check pricing for their CTP premiums on the Government website as prices vary considerably.

This is a hybrid system that certainly is streets ahead of the old system yet without the issues inherent in the Victorian TAC system that loses close to $1 billion per annum,” he says.

Victorian safety levy

Meanwhile, in Victoria the motorcycle safety levy which started in 2002 at $50 is now $73.20 as it is automatically indexed by inflation (CPI) each financial year.

The Victorian Motorcycle Council, Victorian Freedom Riders and Independent Rider’s Group have called for the levy to be scrapped.

Former No 1 member of the Motorcycle Riders Association of Australia and former Rehabilitation Co-ordinator at The Public Transport Corporation, Rodney Brown, says car crashes are more likely to have multiple injuries and deaths, yet drivers do not pay a safety levy.

“In a motorcycle accident there may only be one person involved,” he says.

Rodney Brown bike lanes paramedics safety levy
Rodney Brown

Rod points to a recent seven-car pile-up on the West Gate Freeway in which five people were injured and all were admitted to hospital.

“What would the TAC pay out on this one crash alone?” he asks. 

Funds collected go to safety initiatives such as education and training, infrastructure upgrades, enforcement and improved data collection and analysis.

Since 2012, the safety levy is reported to have raised $70 million.

Rod says riders are still asking where does the money go and has it been effective, pointing out that Victorian motorcycle fatalities increased last year.

He says in 2002 the Opposition State Liberal Transport Minister promised they would immediately remove the impost if they were elected.

However, successive governments have retained it.

Current Roads Minister Luke Donnellan says motorcyclists are over-represented in serious and fatal crashes.

“That’s why we’re identifying the routes riders use and making safety upgrades that we know save lives,” he says.

“Since the Motorcycle Safety Levy was introduced, we’ve completed more than 170 road improvement projects that wouldn’t have happened without the Levy.”

 Rod calls the levy an “unfair tax”.

“Why are motorcyclists paying this unfair tax at all, especially when the Victorian Road Safety Committee, Inquiry Into Motorcycle Safety, recommendation 25, clearly states that the motorcycle safety levy be abolished?” he asks.

Queensland rego

In Queensland, rego charges have just increase 3.5%, the third increase in three years, but the MRAQ still says Queensland riders have the cheapest CTP of all.

Sunshine State riders pay a slightly higher traffic improvement fee than drivers, but the MRAQ says that is offset by lower CTP.

8 Comments

  1. Current Roads Minister Luke Donnellan says motorcyclists are over-represented in serious and fatal crashes.
    “That’s why we’re identifying the routes riders use and making safety upgrades that we know save lives,” he says.
    “Since the Motorcycle Safety Levy was introduced, we’ve completed more than 170 road improvement projects that wouldn’t have happened without the Levy.”

    So, Minister, tell me where you have got rid of that dangerous post & wire.
    Or have you been putting more in & making motorcycle crashes even more dangerous ?

  2. Anything that is government mandated, such as compulsory third party insurance, needs to be provided either by government itself or a non-profit basis. This used to be the case with the GIO and NRMA before the one was privatised and the other de-mutualised. Once you hand it over to the private sector it will be used as a cash cow, precisely because the government mandates that you must have it; therefore it does not operate to free market laws of supply and demand, but on the basis of a kind of cronyism that permits collusion on price by a cosy little coterie of private suppliers. In short, it’s a rort! But then again, I suppose if it was government provided, they would jack up prices anyway – and shove the money into consolidated revenue. Looks like we are stuffed either way. In NSW we had the NRMA to keep the lid on CTP prices until they demutualised it back in 2000, now it’s a free for all!

  3. Well said and written Rodney Brown a man who has worked tirelessly for motorcyclists tights. Yes a car can carry up to 7 in some cases.

  4. I’d like to see the statistics that justify the difference in cost of registering a 1300cc tourer as opposed to a 125cc scooter.
    I think you’d find that even if they had equal numbers on the road the scooters would have a far higher accident rate than the tourers .

    1. And include the stat where a car full of people in an accident is cheaper and does less damage to a second party then a single rider on a bike. Why? According to my insurer, I’m a greater risk on a bike then a car full of people. All crap to extract more $$; it’s a business model aided and abetted by the government.

      So I take any ‘these changes will make your premium less’ stories with a grain of salt. Rarely happens and if it does, the diff will be quickly clawed back.

  5. I have 3 bikes. One on Historic. A 1000cc sports bike and a 1340cc cruiser. I live in rural NSW and the CTP costs are ridiculous to almost prohibitive. These bikes have cheaper CTP in Sydney inner city postcodes than rural NSW. Go figure. There is literally no real price advantage between insurers as only GIO and QBE are in the market here. It actually cost me less for 2 greenslips on a ute and car than it does for the Harley. The whole CTP system in NSW is a farce and it requires more than an over haul to fix.

  6. why cant we just pay a extra fee on our licence each time we renew it then it doesn’t matter what we drive or ride instead of being BENT OVER every time a rego comes up. I own 2 x cars and 1x bike and I cant ride/drive all at once so WTF so tell me why I’m paying for something that’s not being used . I’m sure there are a lot of others out thinking the same

    1. I know how you feel. My Harley is nearly $1000 a year to register, and I live outside Sydney. Perfect record, safe garage. Even though it is a single seat, no discount. Because it is 1690 cc’s it costs more than a 1000 cc sports bike.

      Thing that annoys me the most, which is always ignored in articles such as this, is the MCIS levy which is tied to your CTP costs — I pay nearly $200 extra for the levy. While I acknowledge why the levy was introduced, why should I pay it when I am fully licenced, have a registered vehicle, pay for CTP and have fully comprehensive insurance? It tax upon a tax upon a tax in my opinion.

Leave a Reply

Your email address will not be published. Required fields are marked *