ACT Numbered Regulations - Explanatory Statements

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ROAD TRANSPORT (THIRD-PARTY INSURANCE) AMENDMENT REGULATION 2006 (NO 1) (NO 17 OF 2006)

Australian Capital Territory

Road Transport (Third-Party Insurance) Amendment Regulation 2006 (No 1)

Subordinate Law SL2006—17

made under the

Road Transport (General) Act 1999 section 233

Circulated with the authority of

Jon Stanhope MLA
Treasurer

ROAD TRANSPORT (THIRD-PARTY INSURANCE) AMENDMENT REGULATION 2006 (NO 1)

Authority

This Regulation is authorised by section 233 of the Road Transport (General) Act 1999.

Outline

Section 214 of Road Transport (General) Act 1999 (the Act) prohibits an authorised insurer from charging a higher premium for a compulsory third party (CTP) policy than the maximum premium prescribed by regulation for the policy.

The amendments proposed in this Regulation amend the Road Transport (Third-Party Insurance) Regulation 2000 (the principal regulation) by revising the maximum premiums that can be charged for the various premium classes for CTP policies taking effect on or after 15 June 2006. The premiums set out in schedule 1 to the amending regulation have been developed following a peer review by Cumpston Sarjeant Pty Ltd, an independent actuary engaged by the Government to ensure that the interests of the ACT community are protected.

Revenue/Cost Implications

The Government retains no premium revenue. Accordingly, there are no revenue implications. There are cost implications. ACT agencies will pay CTP premiums in accordance with schedule 1 for registered vehicles that carry CTP insurance.

Formal Clauses

Clause 1 – Name of Regulation – states the title of the Regulation, which is the Road Transport (Third-Party Insurance) Regulation 2006 (No 1).

Clause 2 – Commencement – states when the Regulation commences. The Regulation commences on the day after its notification day.

Clause 3 – Legislation Amended – provides that this Regulation amends the Road Transport (Third-Party Insurance) Regulation 2000.

Clause 4 – Section 11 (1) (a) (i) and (ii) – inserts references to schedule 1 into paragraphs (a) (i) and (a) (ii) of section 11 of the principal regulation.

Clause 5 – New Section 11 (5), (6) and (7) – are transitional provisions that continue to apply the existing schedule of maximum premiums for different classes of vehicles to CTP policies that begin after the commencement of the amending regulation but before 15 June 2006.

Clause 6 – Schedule 1 – substitutes the existing schedule of maximum premiums for different classes of vehicles with the new schedule of premiums that can be charged for CTP policies that begin on or after 15 June 2006.