How MAI insurers set their premiums
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, MAI 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).
One of the objectives of the Government from the scheme reform was 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.
What are the levies that appear on your registration renewal
The levies that appear on your registration renewal notice fund other services associated with road usage, including the MAI Commission and the Lifetime Care and Support (LTCS) Scheme.
The Motor Accident levy funds the MAI Commission in performing its role to regulate, administer, oversee, review and monitor the ACT MAI Scheme. The LTCS levy provides funds for the treatment and care of catastrophically injured persons from motor accidents. You can find information on this scheme on the LTCS website.