Compulsory Third Party Insurance

The Road Transport (Third-Party Insurance) Amendment Act 2012 was passed in the ACT Legislative Assembly on Friday, 24 August 2012 and notified on the ACT Legislation Register on Wednesday, 5 September 2012. The 2012 Amendment Act amends the Road Transport (Third-Party Insurance) Act 2008.

The 2012 Amendment Act was first introduced in the Assembly as the Road Transport (Third-Party Insurance) Amendment Bill 2011 on 17 February 2011. The Bill was referred to the Legislative Assembly’s Standing Committee on Public Accounts on 31 March 2011. The Committee conducted an inquiry and tabled its report on 10 May 2012. To access the report and for further information regarding the inquiry please review the Committee’s website by clicking here.

The key provisions of the 2012 Amendment Act are:

-  Confirmation that the validity of a CTP policy is not affected by an error of the Road Transport Authority (RTA) or licensed insurer

-  Changes to the early payment for medical treatment provisions

-  Clarifying amendments to the provisions relating to the procedures around the compulsory conference and certificate of readiness

-  Amendments to the provisions relating to mandatory final offers

-  A new provision in relation to costs for awards of damages over $50,000

-  A provision to review the operation of the Act every 3 years

-  A definition of non-economic loss for the purposes of the Act

-  A guideline-making power to assist the courts in determining the appropriate level of damages for non-economic loss

-  New provisions around costs in relation to claimants who are children or Commonwealth concession card holders