Australian Capital Territory Numbered Acts

ROAD TRANSPORT (THIRD-PARTY INSURANCE) ACT 2008 (NO. 1 OF 2008) - SECT 43

A CTP premium will fully fund the present and likely future liability under this Act of a licensed insurer if the CTP premium is sufficient—

        (a)     to pay all acquisition and policy administration expenses of the licensed insurer; and

        (b)     to provide an amount of money that together with anticipated investment income is equal to the best estimate of the cost of motor accident claims plus motor accident claim settlement expenses (in inflated dollars) at the assumed date of settlement; and

        (c)     to provide a profit margin in excess of all motor accident claims, costs and expenses that represents an adequate return on capital invested and compensation for the risk taken; and

        (d)     to provide for other matters that a prudent insurer should, in all the circumstances, make provision for.