Department of Treasury and Finance

Private provision of the Compulsory Third Party Insurance Scheme

As part of the 2014-15 State Budget, The Treasurer Hon Tom Koutsantonis, announced that from 1 July 2016, the Motor Accident Commission (MAC) will cease its role as the sole provider of Compulsory Third Party (CTP) vehicle insurance in South Australia, similar to what occurs interstate.

What does this mean?

  • The provision of CTP vehicle insurance will be opened to the private sector.
  • Under the changes, MAC will cease writing new CTP insurance policies and run off its claims against policies issued up to and including 30 June 2016.
  • All surplus net assets from MAC as a result of these changes will go directly into the State Government’s Highways Fund
  • The proposal will not affect the government’s current CTP reform initiative – the Lifetime Support Scheme - which is funded separately to provide lifetime treatment, care and support to all motorists catastrophically injured in a road accident, regardless of fault. 
  • MAC will continue operating its non-commercial community programs, including sponsorship of road safety research and communications aimed at safer road user behaviour. MAC will continue its award-winning role promoting road safety awareness in South Australia.
  • MAC will also continue its role of the Nominal Defendant, in which it acts as ‘insurer of last resort’, to ensure people injured in accidents by unregistered/uninsured or unidentified motor vehicles have access to compensation.