COMPULSORY third party insurance premiums in the ACT will jump 8 per cent from August 16.
The CTP insurance premiums charged by NRMA Insurance, insures most vehicles in the ACT. The new premium for a family car will be $526.60, an increase of $39.10. Insurance premiums last increased in April 2010.
ACT Government Treasury said the approval of NRMA’s new premiums follows an extensive actuarial review process. Under CTP legislation, licensed insurers are requited to charge premiums that will fully fund their present and future liabilities under the legislation to people injured in road crashes but which are not excessive.
The Treasury said the main reason for the increase is growth in the size of award payments, including movements in average wages (a significant part of claims payments), partially offset by a decrease in the overall number claims.