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2010
THE LEGISLATIVE ASSEMBLY FOR
THE
AUSTRALIAN CAPITAL
TERRITORY
EXPLANATORY
STATEMENT
Presented by
Ms Katy Gallagher
MLA
Treasurer
Overview
The Road Transport (Third-Party Insurance) (Governance) Amendment Bill 2010
(the Bill) amends the Road Transport (Third-Party Insurance) Act 2008
(the CTP Act). The CTP Act established a new compulsory third party (CTP)
insurance scheme for the ACT, which came into effect on 1 October
2008.
The Bill makes a number of amendments to the CTP Act intended to
improve the governance of the new scheme. Specifically, the Bill formally
establishes the Australian Capital Territory Compulsory Third Party-Insurance
Regulator (the CTP regulator) as a body similar to the Australian Capital
Territory Insurance Authority (ACTIA). The Bill also sets out the functions of
the CTP regulator.
In addition, the Bill clarifies arrangements for the
keeping of accounts for the nominal defendant fund and for the audit of these
accounts. It also provides that the CTP regulator is to work out and publish
annually an average risk premium for passenger vehicles.
Detail
Clauses 1 - 3
These clauses set out the name
of the Act, the commencement date and the legislation amended by the
Act.
Specifically, the Act is to commence on the day after its
notification.
Clause 4
This clause inserts a new Part 1.2 of
the CTP Act relating to the Objects and important concepts of the
Act.
The new section 5A sets out the objectives of the Act consistent
with the intentions of the scheme reforms introduced by the Road Transport
(Third-Party Insurance) Act 2008.
Clause 5
This clause inserts
a new Part 1.3 of the CTP Act relating to the CTP regulator.
The new
section 14 of the CTP Act establishes the CTP regulator and replaces existing
section 14 (which is to be repealed). As a territory authority, the CTP
regulator is also subject to the financial provisions of Part 8 and the
governance provisions of Part 9 of the Financial Management Act 1996.
The new section 14A of the CTP Act enumerates the functions of the CTP
regulator.
Clause 6
This clause inserts a new section 46A of
the CTP Act relating to the responsibilities of the CTP regulator.
This
clause requires the CTP regulator to work out an average risk premium applicable
to passenger vehicles for all licensed insurers and for this amount to be
published in the CTP regulator’s annual report.
The average risk
premium is the average of all licensed insurers’ estimates of the premium
for a passenger vehicle that will just cover the projected cost of claims,
weighted by market share and expressed as an average price per
policy.
Clause 7
This clause inserts new sections 163F and 163G
in part 4.10A of the CTP Act
The new section 163F of the CTP Act sets
out the obligations of the nominal defendant in relation to keeping accounts for
claims against the nominal defendant and for amounts paid into and withdrawn
from the nominal defendant fund.
The new section 163G of the CTP Act sets
out the obligations of the nominal defendant in relation to having the accounts
for the nominal defendant fund audited after the end of each financial
year.
Clauses 8
This clause inserts the Australian Capital
Territory Compulsory Third Party-Insurance Regulator (the CTP regulator) in the
list of territory authorities to which Part 8 of the Financial Management Act
1996 applies.